10 Crown Place E enquiries@cbgplc.com
London EC2A 4FT W www.closebrothers.co.uk
Registered in England No. 520241
Press Release
Close Brothers Group plc
Trading update
Embargoed for release at 7.00am on 20 January 2012.
Close Brothers Group plc ("the group" or "Close Brothers")
today issues its scheduled pre-close trading update ahead of
its 2012 half year end. All statements in this release relate
to the group's performance over the five months to 31
December 2011 unless otherwise indicated. Close Brothers will
be releasing its half year results for the six months ending
31 January 2012 on 13 March 2012.
Close Brothers has continued to benefit from a strong
performance in the Banking division however the overall
result has been impacted by ongoing difficult market
conditions for Securities. The group remains in a strong
financial position with a sound level of funding and
capital.
The Banking division has continued to deliver a strong
performance in the period. There has been good growth in the
loan book of 9% in the five months to 31 December 2011 to
£3.8 billion (31 July
2011: £3.4 billion), reflecting ongoing good demand across
the portfolio. The net interest margin has remained strong,
close to the level in the second half of the previous
financial year, while the bad debt ratio has remained
stable.
Performance in the Securities division has continued to be
affected by the ongoing very difficult market conditions.
Winterflood's average bargains per day have been in line with
the last financial year. However increased market volatility
and a change in mix driven by reduced retail investor risk
appetite have led to significantly reduced income per bargain
throughout the period. Seydler made a small loss due to low
trading volumes and very limited capital markets
activity.
The Asset Management division has continued to make progress
on its transformation and recorded a small loss in the
period. Assets under Management ("AuM") were £8.4 billion (31
July 2011: £9.6 billion) at 31 December 2011. The reduction
reflects negative market movements and the previously
announced redemption of £1 billion AuM in Institutional,
partly offset by the acquisition in the first quarter of a
small independent financial adviser with around £260 million
of client assets. As a result, total AuM included £6.7
billion (31 July 2011: £6.5 billion) of Private Clients AuM
at 31 December
2011.
As expected, the group's first half performance will be
affected by a lower contribution from Securities
notwithstanding a continued strong performance from
Banking.
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.
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10 Crown Place E enquiries@cbgplc.com
London EC2A 4FT W www.closebrothers.co.uk
Registered in England No. 520241
Enquiries | ||
Sophie Gillingham | Close Brothers Group plc | 0207 655 3844 |
Debbie Sager | Close Brothers Group plc | 0207 655 3845 |
Peter Ogden About Close Brothers | Maitland | 0207 379 5151 |
Close Brothers is a specialist financial services group which
makes loans, trades securities and
provides advice and investment management solutions to a wide
range of clients. 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.
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