Close Brothers Group has reported positive momentum in its banking division during the first quarter of fiscal 2024. However, unfavorable market conditions have impacted the performance of its asset management and Winterflood branches.

Strong Growth in Banking Division

The financial-services company announced that its banking division's loan book has grown by 3.0% over the three months ended October 31. On a yearly basis, it has increased by 7.5% to reach £9.8 billion ($12.17 billion). Close Brothers Group also highlighted strong margins and stable credit performance within the division. Furthermore, it remains confident that full-year banking costs will remain within the 8% to 10% range.

Decrease in Managed Assets for Asset Management Arm

Close Brothers Group's asset management arm has experienced a slight decrease in managed assets, dropping from £16.4 billion to £16.2 billion over the past three months. Overall, total assets have decreased from £17.3 billion to £17.0 billion due to adverse market movements.

Weak Investor Appetite Impacts Winterflood Division

The company's Winterflood division has been affected by continued weak investor appetite, resulting in an operating loss of £2.5 million for the period.

Solid Balance-Sheet Strength

Close Brothers Group finished the period with a common equity Tier 1 ratio of 12.7%, slightly lower than the previous quarter's ratio of 13.3%. This ratio is a key measure used to assess balance-sheet strength.

For more information, contact Elena Vardon.

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