After growth across the portfolio, the banking division of a lender has reported strong growth, with the loan book up six per cent for the year to £4.4 billion at 31st December 2012, confirming its claims that it is on track to return to profitability in the coming year.

The figure at 31st July 2012 was £4.1 billion, showing a £300 million increase.

In a trading statement on the London Stock Exchange, the Close Brothers Group reported Total Assets under Management (AUM) of £8.5 billion at 31st December 2012, a three per cent increase and up from the £8.3 billion held at 31st July.

The company said this progress in the asset management division reflected positive market movements over the period.

Close Brothers said the net interest margin was lower than the last financial year as expected, however the company said this was largely offset by a further reduction in the bad debt ratio reflecting strong credit performance in the period across the businesses.

Yet the trading volume in its securities division, Winterflood, was hit by a sharp fall in the number of investor activity.

In a company statement the group said: "The group is well positioned for the remainder of the 2013 financial year. The banking division continues to see solid prospects for growth and asset management remains on track to move into profitability during the course of this financial year. Challenging trading conditions continue to impact Winterflood's performance although it remains well positioned for any market recovery."

The trading statement came ahead of results for the six months to February, which it will announce in March; the shares edged down 5.5p to 966.5p.

At present (28th January 2013) the shares are currently priced at 995p.