LONDON (dpa-AFX) - Close Brothers Group PLC (CBG.L) said it has delivered a resilient performance so far in the current fiscal year. For the five months to 31 December 2022, the Group recorded an operating profit of 1.7 million pounds. With respect to the Novitas Loans, the Group said it will be increasing further provisions in the first half 2023 financial statements to a level that will adequately cover the remaining risk of credit losses for the current Novitas loan book.
Adrian Sainsbury, CEO, said: 'We saw good demand and strong margins in Banking and delivered healthy net inflows in CBAM, though trading activity remained subdued at Winterflood.'
The Group noted that its Common Equity Tier 1 ratio was 14.4% at 31 December 2022, significantly above the applicable minimum regulatory requirement of 8.5% and also above the group's CET1 capital ratio target range of 12-13%. The impact of the anticipated increased provision would be equivalent to a reduction of up to approximately 80bps in the CET1 capital ratio on a pro-forma basis at 31 December 2022.
Excluding Novitas, the annualised year-to-date bad debt ratio increased to 1.1%. Including Novitas, the annualised year-to-date bad debt ratio increased to 1.7%.
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