Close Brothers Group announced that it had a strong performance in the second half of fiscal 2023, which ended on July 31. The U.K. merchant banking group experienced a 3.7% increase in its loan book, reaching £9.4 billion ($12.10 billion) between July 30 and June 30. This growth can be attributed to the demand in commercial businesses and property finance.
Despite a slight decline compared to the previous fiscal year, Close Brothers’ annualized year-to-date net interest margin was still impressive at 7.7%.
The asset management branch of Close Brothers also saw positive developments, with annualized net inflows increasing to 9% in the current period, in comparison to 5% in fiscal 2022. Despite negative market movements offsetting some inflows, managed assets remained stable at GBP16.1 billion, with total client assets reaching GBP17.0 billion.
During the same period, Close Brothers’ Winterflood business generated an operating profit of approximately GBP3 million. However, subdued trading activity continued to impact its performance.
The common equity Tier 1 ratio, a crucial indicator of balance-sheet strength, stood at 13.7% as of June 30, a slight decrease from the previous quarter.
Overall, Close Brothers Group is well-positioned for future growth and success.