Close Brothers' profits in the second half of 2018 were hit by tough market conditions.
The company's results for the six months to the end of January 2019 revealed Close Brothers posted an operating profit of £135.6m, down 3 per cent year on year.
Close Brothers said this was reflected by "difficult market conditions" in its asset management division, which saw profits fall 5 per cent to £10.8m while client assets fell by 2.1 per cent to £12bn.
Winterflood, the company's market making business, saw its profits fall by 37 per cent to £9.3m due to lower trading volumes.
Preben Prebensen, chief executive of Close Brothers, said: "We delivered another solid performance in the first half, continuing to achieve strong returns while staying true to our service led business model, disciplined approach, and commitment to investing through the cycle.
"Longer term, we are confident that the disciplined application of our business model will continue to allow us to support our clients and customers and invest in our business, while maintaining strong returns and profitability in a wide range of market conditions."
Close Brothers' banking division saw its profits grow by 1 per cent to £131.1m and the company's loan book increased by 2 per cent to £7.4bn, driven mainly by its premium finance business.
Its net interest margin - the difference between interest paid out on deposits and that received on loans - was stable at 8.1 per cent.
damian.fantato@ft.com
