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Financial services company Close Brothers reported a fall in profit amid weaker performance in its banking business amid a lower interest rate environment.
For the financial year ended 31 January 2020, pre-tax profit fell 8% to £124.1m even as revenue increased as income increased 12% to £65.7m,
Banking adjusted operating profit fell 12% on-year to £115.4m, reflecting 'modest income growth combined with some normalisation of bad debts and ongoing investment,' the company said.
Net interest margin fell to 7.8% from 8.1%, while the common equity tier (CET) ratio increased to 13.4% from 13%.
The asset management business achieved an adjusted operating profit of £12.6n, up 17% year-on-year, supported by 'strong' annualised net inflows at 12% and positive market movements, the company added.
The company declared an interim dividend per share of 22.7p, up 3%.
'The near-term outlook for the UK economy remains uncertain, heightened by escalating concern about the Coronavirus and its potential impact on businesses and financial markets,' the company said.
At 8:22am: (LON:CBG) Close Brothers Group PLC share price was -1p at 1137p