Trading Statement

Close Brothers Group PLC
31 January 2000

                               TRADING STATEMENT

In advance of the group's interim statement due to be announced in early
March, the Board of Close Brothers Group plc announces that the interim profit
before tax for the group for the six months ending 31 January 2000 will be
substantially in excess of market estimates. This is largely due to
exceptionally active trading in stocks of smaller companies on the London
Stock Market since October 1999 which has led to a substantial increase in the
profits of Winterflood Securities' market-making operation.

The Board estimates that the group profit before tax, reorganisation costs and
goodwill write-off for the six months ended 31 January, 2000 will be in excess
of £72.5 million compared to £33.2 million last year, an increase of some
118%. Earnings per share will be in excess of 37p compared to 18.35p last
year, an increase of some 102%.  Reorganisation costs, principally arising
from the recent acquisition of the Rea Brothers Group, are estimated at
approximately £8 million (1999 £nil) and goodwill write-off approximately £1
million (1999 £nil).

The Board estimates that the mix of operating profits from the three main
divisions will be approximately as follows:-

                                  First     First     Full
                                  half      half      year
                                  2000      1999      1999
                                                      
City Merchant Banking             23%       34%       31%
Market-Making                     65%       32%       39%
Asset Finance                     12%       34%       30%

Our City Merchant Banking division performed well and, with the inclusion of
the former Rea Brothers Group for the first time, increased its contribution
by some 50%.

Our Corporate Finance activity had a busy period, adding new clients and
increasing its profits compared to last year.  This activity was focused on
medium-sized growth companies particularly in the technology, leisure and
business services sectors, where we have particular expertise.  It also
increased its European presence by acquiring a significant shareholding in
Close Brothers Dome in Paris.  This enhances our medium-term objective of
providing high quality advisory services to medium-sized growth companies in
France and Germany.

The growth of our Asset Management activity has continued apace and the
integration of the recently acquired Rea Brothers is going well.  Investment
funds under management now total approximately £2.4 billion, with further
substantial cash and trust assets managed and administered off-shore.  A
recent success has been the launch of our Close FTSE Techmark Fund in October,
which now exceeds £100 million.

Our Banking activity has performed well.  Total customer deposits have grown
to over £850 million and our property lending activity has been brisk,
bolstered by our acquisition of Granville Bank in October.  Prompt Commercial
has benefited from an improving market environment and additional senior
management, and our relatively new PROMPT Personal operation has got off to a
satisfactory start.

Our debt factoring company produced, once again, record interim results with
strong sales based on high service levels.  Mortgage Intelligence, a near
start-up in which we invested in 1997, has rapidly built up a leading mortgage
broking network in the UK, and has moved, on plan, into profit.

Our Asset Finance division saw lower results in the period.  This was
principally because of uncertainty in the UK car industry, where used car
volumes and prices have fallen, reflecting the anticipated one-off reduction
in new car prices.  We believe that as this uncertainty dissipates, the market
will become more stable and that our trading will improve as the year
progresses.  In September 1999 we acquired Warrior Group, in which NAAFI
remained as a minority investor.  As planned, this company is going through a
period of significant operational reorganisation which is unlikely to be
completed until next financial year, when the emphasis will be put on
marketing.

In our Commercial asset sector, we have experienced a mixed market and lower
than planned volumes of new business.  On the important printing equipment
side we have seen signs of improvement in the market, although it still
remains somewhat patchy.  Other assets experienced mixed fortunes, with
commercial vehicles holding up well, but light aircraft experiencing low
volumes.  Towards the end of the period we recruited two new teams in the
North West with specialist knowledge of machine tools and other commercial
assets.

Our Market-Making division, Winterflood Securities ('WINS'), showed
spectacular growth in its volumes and profits.  For the last five years, WINS'
profits have been rising, even though during that time small company stocks
were comparatively out of favour. Over this period WINS took considerable
steps to broaden its business by investing in the ability to deal with orders
automatically and electronically, by increasing the number of stocks in which
it deals and by diversifying into retail Gilts market-making.  More recently
WINS has started market-making in European stocks mainly in Germany and
France.  WINS currently makes markets in over 1,800 stocks and gilts.

In the last three months the amount of activity in small company stocks, and
technology stocks in particular, has increased substantially.  One of the
reasons, we believe, for the increase in this overall activity is the ease of
dealing which new technology provides for private investors.  We have also
seen a substantial and continued growth in the number of bargains which we
book through our automatic execution systems.  WINS' careful positioning in
the market place, and its investment in people and systems, are being amply
justified.

WINS Gilts is now established as one of the pre-eminent participants in the
retail market for Gilts and also produced record interim results.  It is
currently expanding its market-making into other fixed interest instruments,
such as Eurosterling Bonds, Preference Shares and PIBS.

The group's full interim results, dividend and outlook will be announced on 6
March 2000 in the normal way.


Enquiries to:

Rod Kent/Peter Winkworth                       0207 426 4000
Close Brothers Group plc

John Sunnucks                                  0207 404 5959
Brunswick Group Limited