LONDON (dpa-AFX) - Close Brothers Group plc (CBG.L) issued its trading update relating to the first quarter of its 2024 financial year from 1 August 2023 to 31 October 2023. In Banking, it delivered loan book growth across its businesses, strong margins and a stable credit performance.
The company noted that Close Brothers Asset Management or CBAM delivered strong net inflows, at the top end of its target range, helped by hiring strategy. At Winterflood, performance was impacted by further weakening of investor appetite but it remains well placed for any recovery.
Adrian Sainsbury, Chief Executive Officer, said, 'Performance in the first quarter of 2024 reflected continued momentum in Banking, whilst our market-facing businesses were impacted by unfavourable market conditions.'
In Banking, the loan book increased 3.0% in the quarter or 3.4% excluding Novitas and the Irish Motor Finance business in run-off and 7.5% year-on-year to 9.8 billion pounds, reflecting a continuation of the momentum seen in the second half of the 2023 financial year.
Close Brothers Asset Management reported strong year-to-date annualised net inflows of 10%, with the new bespoke investment managers continuing to contribute significantly to the overall inflow rate.
Winterflood's performance has been adversely impacted by a further weakening of investor appetite and market uncertainty, resulting in an operating loss of 2.5 million pounds in the first quarter.
The company said its Banking business is sustaining its growth momentum and focusing on pricing discipline, and remains well positioned to make the most of opportunities in the current environment.
In CBAM, the company remains committed to driving growth organically, through high quality hiring, and through in-fill acquisitions. Winterflood is well positioned for when investor confidence recovers.
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