Close Bros hails 'very good' start to year on banking, Winterflood strength

FTSE 250 merchant bank Close Brothers said on Thursday that it has made "a very good start to the year”, mainly on the back of strength in its banking division and higher trading income in market maker Winterflood.

In a trading update for the first quarter from 1 August to 31 October, the company said the loan book grew to £6.6bn from £6.4bn at the end of July, with the bad ratio reduced markedly compared to the previous year, driven by continued good underlying credit performance as well as provision releases.

Growth in the property business was particularly good, with continued strong demand for residential development finance, while Retail also performed well with growth in premium finance and motor finance in Ireland.

In the commercial business, growth continues to be driven by more specialist lending areas.

As far as market maker Winterflood is concerned, the division continued to see increased investor risk appetite and retail trading activity, particularly in August and September.

Meanwhile, Asset Management benefited from improved market levels with managed assets at the end of October of £8.2bn, up from £8bn at the end of July.

“Although the macroeconomic outlook remains uncertain, at this stage we are confident in delivering a good outcome for our 2017 financial year.”