Interim Management Statement

RNS Number : 3851W

Close Brothers Group PLC

18 November 2010

 



Close Brothers Group plc

Interim Management Statement

Close Brothers Group plc ("the group" or "Close Brothers") today issues its Interim Management Statement relating to the first quarter from 1 August 2010 to 31 October 2010.  All statements in this release relate to that time period, unless otherwise indicated.

Group and divisional performance

Close Brothers has delivered a solid overall performance in the first quarter with continued strong capital and funding positions.

The Banking division has continued to perform well with good loan book growth and a strong net interest margin reflecting continued demand for the division's specialist lending services.  At 31 October 2010 the loan book was £3.1 billion (31 July 2010: £2.9 billion), an increase of 7%.  During the period the bad debt ratio was higher relative to the second half last year due to a bad debt in the legacy Property portfolio.  However, for the 2011 financial year, the bad debt ratio is expected to be slightly down on the 2010 financial year.

The Securities division has had a sound performance in the first quarter.  Winterflood income per bargain improved relative to the second half of last year and average bargains per day were broadly unchanged.  Close Brothers Seydler performed well as capital market activity increased while Mako was subdued due to continuing low volumes and lower volatility.

As expected, the Asset Management division made a small loss as it continues to invest for future growth, particularly in Private Clients.  Total Funds under Management ("FuM") increased 14% to £8.5 billion at 31 October 2010 (31 July 2010: £7.4 billion) reflecting the acquisition of the Chartwell Group and market movements. 

Outlook

Given the solid overall performance in the first quarter, we remain confident we will deliver a satisfactory performance for the full year.

Enquiries:

Erica Sibree - Investor Relations                                         Close Brothers Group plc         020 7655 3353 Debbie Sager - Investor Relations                   Close Brothers Group plc         020 7655 3845

Robert Morgan - Corporate Communications Close Brothers Group plc         020 7655 3350 Anthony Silverman - Media Relations              Maitland                                     020 7379 5151

 

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