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Close Brothers posts slower lending growth

The alternative lender has reported weaker client activity
May 22, 2019

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.