Close Brothers expects solid year

18th Nov 2009 07:45

Merchant bank Close Brothers expects a solid performance for the current year after all three of its divisions had a decent first quarter, though it added the result will depend on the extent of any continuing economic and financial market recovery. The Securities division again did well reflecting strong volumes at market making arm Winterflood, where average bargains per day increased in the first quarter relative to the second half of last year supported by the recent rally in equity markets. The banking division has had a strong performance in the first quarter with the loan book at £2.43bn up 3% from £2.36bn over the past three months. The bad debt ratio has reduced relative to the second half of last year although the outlook remains uncertain and sensitive to the economic environment.Fund management increased funds under management by 5% to £7.2bn, reflecting stronger market performance.