Close Brothers hails solid first quarter

18th Nov 2010 09:34

Merchant bank Close Brothers hailed a solid overall performance in the three months to end-October, with the group enjoying continued strong capital and funding positions.The group's banking division saw good loan book growth and a strong net interest margin reflecting continued demand for its lending services. The loan book grew 7% to £3.1bn, compared with £2.9bn for the preceding quarter.However, the bad debt ratio - which is the ratio between total sales and those of unrecoverable payment - was higher relative the second half of last year "due to a bad debt in the legacy property portfolio", the group says. Nevertheless, 2011 financial year bad debt ratio is expected to be below 2010.The securities division had a sound performance with Winterflood Securities income per bargain improving relative to the second half last year, and Close Brothers Seydler performing well as capital market activity increased.The asset management division made a small loss, as expected, as it continues to invest for future growth. Total funds under management increased 14% to £8.5bn at the end of the quarter compared to £7.4 as of July, reflecting the acquisition of the Chartwell Group."Given the solid overall performance in the first quarter, we remain confident we will deliver a satisfactory performance for the full year", the statement said.