UK-based specialist financial services company Close Brothers Group Plc (CBG.L) Friday said it achieved another good performance in its third quarter and maintained its strong funding, liquidity and capital positions. The firm said it remains well placed for the rest of the financial year and is confident of delivering a good result for the full year.
In an Interim Management Statement, the firm said its Banking division continued to deliver solid growth, with the loan book increasing to 4.5 billion pounds, amid growth in motor finance and the Commercial businesses. Profit in the second half is expected to be broadly in line with the first half.
Growth in the business was slightly lower than last year due to a moderation in demand in some markets. The net interest margin remained broadly stable.
In Securities division, market conditions were mixed in the quarter. For Winterflood, performance overall remained consistent with the first half of the year. According to the company, Winterflood's average bargains per day increased due to higher trading activity, particularly in large cap stocks. However, this was offset by a reduction in income per bargain due to continued subdued volumes and difficult trading conditions in the AIM and small cap sectors. Seydler benefited from increased capital markets income in the period.
The Asset Management division made further progress in the quarter with positive sales momentum. Total AuM increased to 9.2 billion pounds, reflecting positive market movements and positive net flows. The revenue margin also increased slightly from the first half. The division is expected to deliver a small profit for the full year.
In mid-March, Close Brothers reported a higher profit for its first half mainly on strong performance in Banking division and consistent profitability at Winterflood, despite the absence of prior year's exceptional income.
In London, the shares are currently trading at 1,068 pence, down 22 pence or 2.02 percent.
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