Close Brothers Group has reported reduced trading income in its Winterflood securities business and a drop in client assets due to negative market movements in what it described as a “challenging” first quarter.
The trading update for the three months from August 1 to October 31 2015 noted its banking division had continued to deliver solid growth with the loan book up 2.8 per cent in the period.
However it reported its Winterflood securities business “has been affected by difficult market conditions since the start of the financial year”.
It stated that while volumes were broadly unchanged, “falling equity markets and volatile trading conditions, particularly in August and September, have resulted in lower profitability compared to the same period last year”.
Meanwhile its asset management division “continued to achieve solid net inflows, although client assets reduced overall due to negative market movements in the period”. The figures showed total client assets slipped from £10.8bn at the end of July to £10.6bn at October 31.
In spite of this the company stated: “We remain confident in delivering a satisfactory outcome for the year. We see continued opportunities for growth in the Banking division, whilst maintaining our prudent risk profile and focus on returns. Winterflood is well positioned but remains sensitive to market conditions. In asset management we expect to see continued net inflows and progress in the business.”
