With the mainstream lenders still reluctant to lend, investors can expect a robust performance from specialist bank Close Brothers (CBG), which reports full-year figures on Tuesday 23 September. The UK's well entrenched economic recovery should bolster demand for credit, too.
A trading statement in late July revealed that the banking division, which focuses on motor finance and property-related lending and generates around 80 per cent of group profits, is growing fast. In the 11 months to the end of June, the division grew its loan book by 12 per cent to £5.2bn. Despite that growth, credit quality has remained strong. At the half-year stage, for example, impairment losses represented a mere 1 per cent of the loan book.
Moreover, the asset management arm grew assets under management by 7 per cent in that 11-month period, to £9.7bn, reflecting net fund inflows and positive market movements. The securities unit, meanwhile - dominated by market maker Winterflood - is likely to have seen stronger trading volumes. But income per bargain is under pressure, reflecting increased trading in lower-margin stocks.
Broker Numis Securities expects pre-tax profit for end-July 2014 of £197.6m, giving EPS of 106p (from 83.2p in 2013).
