Close Brothers Group PLC

Business and Financial Review • Nov 21, 2013

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RNS Number : 5733T

Close Brothers Group PLC

21 November 2013

Press Release

Close Brothers Group plc

Interim Management Statement

21 November 2013

Embargoed for release at 7.00am on 21 November 2013.

Close Brothers Group plc ("the group" or "Close Brothers") today issues its Interim Management Statement relating to the first quarter from 1 August 2013 to 31 October 2013.  All statements in this release relate to that time period, unless otherwise indicated. 

·     Close Brothers has made a positive start to the year

·     The strong performance in Banking continued with loan book growth of 3% in the quarter to £4.8 billion

·      Winterflood benefited from improved market conditions and increased retail investor trading activity

·     In Asset Management, Assets under Management ("AuM") increased 3% to £9.3 billion

·     The group maintained its solid funding, liquidity and capital positions

Banking

The Banking division made a strong start to the year.  The loan book increased by 3% to £4.8 billion at 31 October 2013 (31 July 2013: £4.6 billion) with good growth across all of the lending businesses.  Overall the lending environment is largely unchanged since year end, with the bad debt ratio improving in the quarter, principally driven by Property.  The net interest margin has remained broadly stable. 

Securities

Winterflood's performance improved in the first quarter reflecting early signs of recovering market sentiment and more favourable trading conditions.  Income per bargain increased primarily reflecting improved AIM trading, while average bargains per day also increased.  Seydler's performance was broadly consistent with the prior year.

Asset Management

The Asset Management division continued to make progress.  Total AuM increased 3% to £9.3 billion (31 July 2013: £9.1 billion), reflecting both positive market movements and net inflows during the quarter.  The revenue margin was broadly stable on the prior financial year.

Outlook

We have made a positive start to the year.

We continue to see good growth opportunities for the Banking division and remain focused on maintaining the quality of our lending model.

Winterflood has maintained its market leading position and is well placed to benefit if current market conditions are sustained throughout the year. 

Asset Management remains on track as the division continues to progress towards our medium-term targets.

Overall, we remain confident in the outlook for the current financial year.

Enquiries

Jon Nash                                              Close Brothers Group plc                                           0207 655 3844

Clara Melia                                           Close Brothers Group plc                                           0207 655 3350

Helen Price                                           Close Brothers Group plc                                           0207 655 3292

Peter Ogden                                         Maitland                                                                       0207 379 5151

About Close Brothers

Close Brothers makes loans, trades securities and provides financial advice and investment management services.  Close Brothers was established in 1878 and today employs over 2,500 people, principally in the UK.  Close Brothers Group plc is listed on the London Stock Exchange and is a member of the FTSE 250.

This information is provided by RNS

The company news service from the London Stock Exchange

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