Close Bros shrugs off 'more difficult' fourth quarter

23rd Jul 2010 07:40

Close Brothers Group still thinks it will deliver a “solid” performance for the full-year, although funds under management eased in the last three months and it’s making less per trade at its market making arm.Favourable market conditions helped the merchant bank improve the loan book to £2.9bn on 30 June from £2.6bn at the end of January and £2.7bn in the third quarter.The net interest margin remained broadly in line with the first half, while the bad debt ratio improved “marginally” during the five months to 30 June.Underlying results for the period at the asset management division were “subdued”, with funds under management back to where they were in January at £7.3bn. They’d risen to £7.6bn in the third quarter. Conditions became “more difficult” at the securities division later in the period, with income per bargain “materially lower”, particularly in the last few months. People still seem keen to trade though as average bargains per day were “slightly higher” than the first half of the financial year.“The group remains confident that it will deliver a solid overall performance for the 2010 full financial year,” said the group, which publishes figures for the 12 months ending 31 July on 28 September.