(Alliance News) - Close Brothers Group PLC said recent trading has been promising, with the Winterflood unit helped by "favourable market movements" and as loan volumes increased due to boosted demand for UK government Covid-19 business support schemes
In the five months ended December 31, the merchant bank's loan book rose 6.5% to GBP8.1 billion from GBP7.6 billion at the end of July.
Close Brothers said its banking arm saw "strong demand for loans issued under the UK government support scheme".
The Common Equity Tier 1 capital ratio improved to 14.8% from 14.1% at the end of July.
In the asset management unit, total client assets at December 31 improved to GBP15.0 billion from GBP13.7 billion at the end of July.
It means that total client assets are back above levels since in January 2020, shortly before being hit by Covid-19. Client assets at January 31 were GBP14.0 billion but dropped to GBP13.0 billion on April 30.
Managed assets rose by 10% to GBP13.9 billion from GBP12.6 billion.
The rise in assets the five months to December was helped by "favourable market movements", Close Brothers explained, together with net inflows of 5.4%.
"Winterflood delivered a very strong trading performance, benefiting from a further acceleration in market activity in recent months and the expertise of our traders," the company added.
Winterflood, the company's stock brokerage, has seen a substantial rise in year-to-date operating profit, Close Brothers said.
Average daily bargains stood at 92,000 during the five months to December, up from 82,000 at the same point a year earlier.
Close Brothers Chief Executive Officer Adrian Sainsbury said: "We have delivered a strong performance year to date, with the positive trends reported at the end of the first quarter continuing.
"Although the external environment remains highly uncertain, with national lockdown restrictions currently in place, our proven model and significant experience leave us well positioned."
Close Brothers shares were 3.7% higher at 1,472.00 pence each in London on Thursday morning.
The company posts results for the six months ended January 31 on March 16.
By Eric Cunha; ericcunha@alliancenews.com
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Close Bros (CBG)