logo-loader
Close Brothers Group

Close Brothers warns tough equity markets are taking a toll

share_price350_4f1923fdc550d.jpg

Tough equities markets have continued to trouble Close Brothers’ (LON:CBG) securities arm over the past five months, though its bank division is thriving.

The financial services group said while market-maker Winterflood's saw a similar level of daily trades in the five months to December to the previous year, increased market volatility and reduced retail investor risk appetite had "significantly reduced" income per trade.

In contrast, the bank loan book increased by 9% in the five months to December to £3.8 billion with demand described as good across the portfolio. 

Net interest margin had remained strong and close to the level in the second half of the previous financial year, while the bad debt ratio remained stable. 

The asset management division recorded a small loss in the period, while funds under management fell by £1.2 billion to £8.4 billion over the five months.

Close said the drop reflected institutional redemptions and private client money under management rose slightly to £6.7 billion.

“Financial market conditions have remained difficult in January and are uncertain for the second half of the financial year.  However, our businesses remain well positioned and we continue to see a strong performance in the Banking division,” Close added. 

Half year results for the six months to January wil be published on 13 March.

Quick facts: Close Brothers Group

Price: £12.57

Market: LSE
Market Cap: £1.9 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Zena Pay looks to help cannabis industry navigate the...

Fig House communication’s Dave Carter joined Steve Darling from Proactive Vancouver to discuss Zena Pay. They provide software solutions that specialize in payment, plant tracking, cannabis business management software, supply chain management, compliance management and government auditing...

2 days, 7 hours ago

RNS

Transaction in Own Shares

6 days, 7 hours ago

Director/PDMR Shareholding

1 week, 5 days ago

Total Voting Rights

2 weeks, 4 days ago

Transaction in Own Shares

2 weeks, 6 days ago

Transaction in Own Shares

3 weeks, 6 days ago

Scheduled Trading Update

4 weeks, 2 days ago

2 min read