Close Brothers Reports Solid Performance With 5% Loan Book Growth

(Alliance News) - Close Brothers Group PLC said Friday that its banking division's loan book grew during the first 11 months of its financial 2019, as the company saw a "solid" performance despite mixed trading conditions.

The financial services company said loan book reached GBP7.6 billion as at June 30, up from GBP7.3 billion at the end of the first 11 months of the last financial year.

The FTSE 250-listed firm, which ends its financial year on July 31, said its commercial and retail sectors have both grown with its property division remaining flat.

Close Brothers said banking unit's bad debt ratio remained low and year-to-date net interest margin was 7.8%, slightly lower on last year's 8.0%

The company's asset management sector saw managed assets rise to GBP11.3 billion from GBP10.2 billion a year ago. Total client assets also increased year-on-year to GBP12.9 billion from GBP12.0 billion.

The Winterflood securities business saw "solid" profit levels despite trading volumes remaining low, Close Brothers said.

The company will release its full-year results on September 24.

Shares in Close Brothers were down 3.0% at 1,407.00 pence each in London on Friday morning.

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