The Group’s banking division posted a 14 per cent rise in adjusted operating profit to £89.6 million.
Close Brothers’ loan book has consistently grown and it has now risen to a record £4.9 billion.
According to its results, its loan book has a “consistent risk-profile” with “short term, around 90 per cent secured with prudent loan-to-value ratios”.The business, which accounts for 82 per cent of overall profit, lends to people and SMEs, and provides deposit-taking services.
In its 2014 Interim Results, Close stated that its “clear, consistent strategy” and “maintained leading positions in our market” means that Close “remain well positioned for future growth”.
In its summary income statement, there was a 14 per cent rise in income to £322 million, with a “good loan book growth in banking” and “improved investor risk appetite in securities”.
Looking at the Group’s balance sheet assets, as at 31 January 2014, Close Brothers recorded £4.856 billion of loans and advances to customers, an increase of £210 million on the results posted at 31 July 2013.The loan book has grown by 11 per cent in the last 12 months. The growth in the commercial, property and retail business units of the loan book increased by three, six and five per cent respectively over the six-month period.
The commercial loan book experienced good growth in asset finance, and was partly offset by a seasonal reduction in invoice finance. This unit grew by £62 million to £1.908 billion.
There was “good demand and limited competition” with the property loan book, which experienced a six per cent rise to £950.6 million, representing a £56.7 million rise.
The retail loan book size was just £3 million short of hitting £2 billion on 31 January 2013. “Good demand in motor finance, despite increased competition”, and “growth across all business lines in premium finance” helped to record a £91 million surge in the loan book.
All three divisions of the Close Brothers Group – Banking, Securities and Asset Management - contributed to the improved performance results.
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