Close Brothers trades well despite Brexit concerns

The FTSE 250 firm said it has continued to perform well in the five months to 30 June, and remained confident in delivering a “solid result” for the current financial year.

It said the banking division has continued to achieve good growth, while maintaining its focus on returns and prudent underwriting in a competitive market.

“Overall the loan book increased 7.2% in the period and is up 11.6% year to date to £6.4bn, with growth across all our lending businesses,” the board said in a statement.

Close’s net interest margin has remained broadly stable on the first half and the bad debt ratio remained unchanged, at or close to historical lows across the division.

It said the growth in expenses has been lower than the first half, as the firm maintains a disciplined approach to costs while continuing to invest in the business.

“The improvement in Winterflood's performance since the first half has been further extended by an increase in trading volumes following the UK referendum result.

“Asset Management has continued to achieve net inflows and market movements were positive, with managed assets increasing to £7.8bn and total client assets to £9.6bn,” the board said.

Looking ahead, the group said it has seen little direct impact on its business following the recent UK referendum, but continues to monitor market conditions carefully.

“Longer term, we are confident that our proven business model, prudent approach to underwriting and strong funding and capital position leave us well placed to continue trading successfully in all market conditions,” the board explained.

Close Brothers will report results for the year to 31 July on 27 September.