(Alliance News) - Merchant bank Close Brothers Group PLC on Friday reported a positive third quarter driven by strong trading at its Winterflood subsidiary and high new business volumes in its lending business.
Close Brothers said it continued to perform strongly in its financial third quarter to April 30, in line with the trends reported for the first half of the year.
The third quarter saw high new business volumes in the lending business, solid net inflows in asset management, and a strong trading performance by stockbroker Winterflood. Winterflood's year-to-date operating profit for financial 2021 is ahead of the level achieved in the whole of the 2020 financial year, Close Brothers highlighted.
London-based Close Brothers said its capital position remained strong, with a Common Equity Tier 1 capital ratio of 15.5%, up from 15.3% at January 31, which it said was significantly above the applicable minimum regulatory requirement.
In the Banking unit, the loan book increased by 3.2% in the quarter and 7.7% year-to-date to GBP8.2 billion, up from GBP8.0 billion at the end of the previous quarter.
Looking ahead, Close Brothers said: "We continue to respond well to the challenges and opportunities arising from the current environment. Although there has been some improvement in the broader economic outlook, the impact of Covid-19 on customers remains uncertain.
"Our proven and resilient model and strong balance sheet, combined with our deep experience in navigating a wide range of economic conditions, leave us well placed to continue supporting our colleagues, customers and clients over the long term."
Shares in Close Brothers were up 0.3% at 1,584.00 pence each in London on Friday morning.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Close Bros (CBG)