REG - Close Bros Grp PLC - Scheduled Trading Update <Origin Href="QuoteRef">CBRO.L</Origin>

Close BrothersAnnouncement

21/07/2016 07:05

RNS Number : 7956E
Close Brothers Group PLC
21 July 2016
Scheduled Trading Update
Close Brothers Group plc ("the group") today releases its scheduled pre-close trading update ahead of its 2016 financial year end. All statements in this release relate to the five months to 30 June 2016 ("the period") unless otherwise indicated.
The group will report results for the year to 31 July 2016 on 27 September 2016.
Group and divisional performance
The group has continued to perform well in the 5 months to 30 June 2016 and we remain confident in delivering a solid result for the current financial year.
The Banking division has continued to achieve good growth, while maintaining our 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 6.4 billion (31 January 2016: 6.0 billion), with growth across all our lending businesses.
The net interest margin has remained broadly stable on the first half and the bad debt ratio remains unchanged, at or close to historical lows across the division. The growth in expenses has been lower than the first half, as we maintain 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 7.8 billion (31 January 2016: 7.3 billion) and total client assets to 9.6 billion (31 January 2016: 9.1 billion).
Outlook
The group has performed well year to date and we remain confident in a solid outcome for the current financial year.
We have seen little direct impact on our business following the recent UK referendum, but continue 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.
Enquiries
Sophie Gillingham 
Close Brothers Group plc  
020 7655 3844
Eva Hatfield 
Close Brothers Group plc  
020 7655 3350
Lois Hutchings 
Close Brothers Group plc  
020 7655 3468
Andy Donald 
Maitland 
020 7379 5151
About Close Brothers
Close Brothers is a leading UK merchant banking group providing lending, deposit taking, wealth management services and securities trading. We employ around 3,000 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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