Close Brothers confident after strong banking results

20th Nov 2014 09:50

UK merchant bank Close Brothers reported that strong performance in banking had offset challenging market conditions in the firm's securities division.After releasing results for the three month period ended 31 October on Thursday, the company reported that its Winterflood security business had been hurt by reduced investor risk appetite and increased market volatility.As a result, the firm saw a significant decline in income per bargain rates compared to the previous financial year.However, Close Brother's banking division continued to generate strong returns, with loan books increasing by 2.3% to £5.4bn during the period.Moreover, the firm's funds under management remained stable at £9.7bn during the quarter.Looking forward, the group said: "In banking we expect to deliver continued loan book growth at strong margins while remaining focused on the quality of our lending model. "Winterflood remains sensitive to market conditions but is well placed to benefit as conditions improve. "We continue to see opportunities to deliver growth at attractive margins in Asset Management. "Overall, the group remains confident about delivering a good result for the 2015 financial year."As of 10:20 on Thursday, the group's share price rose 0.41% to 1,474p per share.