Close Brothers (CBG) continued to face challenging market conditions during its third quarter, resulting in lower activity in banking and its Winterflood market-making business. The loan book grew just 1.5 per cent to £7.4bn, while the net interest margin remained at the lower end of its 8-10 per cent target range. That compares with 2.4 per cent growth in the banking loan book during the same quarter last year.
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Winterflood reported low trading volumes as retail investor confidence remains subdued, although delivered “solid profitability” during the period. Modest net inflows and positive market movements meant Close Brothers has posted a £600m rise in managed assets since the start of the year.