Close Brothers on track

21st Jan 2011 07:16

Close Brothers remains on course for a 'satisfactory' outcome this year despite a pick-up in bad debts, though it had flagged this previously.The merchant bank arm increased lending by 10% to £3.2bn in the five month period to December, with net margins holding up.Bad debts as a percentage rose over the period after a legacy proprty problem, mentioned in November, but for the 2011 financial year as a whole Close still expects the bad debt ratio to be slightly down on last year. Securities business was solid with strong retail activity and better income per bargain at Winterflood. Close Brothers Seydler performed well reflecting increased capital markets activity while Mako's performance remained subdued. Asset Management made a small loss, though total Funds under Management increased 19% to £8.8bn at end December reflecting market movements and the Chartwell Group acquisition.