Close Brothers has reported a three per cent decline in client assets due to difficult trading conditions in its pre-close trading update released today (January 22).
The group stated its asset management division had achieved "good net inflows" in the last half of 2018 but these were more than offset by negative market movements, resulting in a 3 per cent decline in total client assets to £11.7bn.
Winterflood continued to deliver solid profitability, but volumes and trading income were significantly lower than in the previous year, reflecting difficult and volatile equity market conditions, particularly in December.
The group’s loan book grew 3.1 per cent to £7.5bn in the period driven by new business volume across the commercial business and in premium finance.
Close Brothers will release its half-year results for the six months ending January 31, 2019 on March 12 and expects a solid outcome for the first half.
The group stated it remained "well positioned for the remainder of the financial year".
