Close Brothers interim profit boosted by increased lending

11th Mar 2014 07:07

- Half-year profit boosted by increased lending- Confident about future trading- Dividend increased by 10 per centFTSE 250-listed specialist financial services group Close Brothers posted a solid set of half-year figures after an increase in lending and good growth across all of its divisions.The group said it continues to see good opportunities for growth in its niche markets and underlined its confidence in future trading with a 10% hike in its dividend payment.Adjusted operating profit jumped 21% in the six months ended January 31st from £80.5m a year earlier, boosted by increased lending at its main banking division.Adjusted operating profit at its Banking division rose 14%, reflecting a 5% increase in its loan book for the year-to-date to £4.9bn.Adjusted operating profit in asset management increased to £3.2m and assets under Management (AuM) rose 2% to £9.3bn.In its Securities division, Winterflood's adjusted operating profit increased 81% to £13.4m reflecting stronger trading relative to the first half of 2013.Looking ahead to future trading the group said it expects to deliver good growth at attractive margins in its banking division, while its Winterflood is well positioned to continue to benefit from a stronger cyclical recovery, particularly if current market conditions on AIM continue. In Asset Management, it said progress is being made towards its profitability target as the business builds scale. "Our business model, strong performance and financial position ensure that we are well placed going forward and we remain confident in the outlook for the year," it said.The board has recommended a dividend increase of 10% to 16.5p.CJ