Close Brothers cautious on outlook despite 2021 profit surge
Close Brothers today said the market maker business had made more operating profit this year than over the whole of fiscal 2020.
The British lender’s profits were bolstered by a surge in trading activity, with average daily bargains rising 46 per cent to 120k in the quarter ended 30 April.
Close Brothers’ loan book rose 3.2 per cent in the quarter to £8.2bn, boosted by strong demand for loans issued under the government’s Covid loan scheme.
The mid-cap company’s managed assets also shot up to £14.8bn from £13.8bn at the start of the year.
Adrian Sainsbury, CEO of Close Brothers, said that “uncertainty remains” despite the strong quarterly performance.
“There are positive signs of economic recovery, but uncertainty remains. I am confident that our proven and resilient model, together with the expertise of our people, leave us well placed to continue supporting our customers and clients and to make the most of opportunities going forward.”
The company added: “Our impairment provisions continue to reflect the uncertain external environment and the fact that the full impact of Covid-19 has yet to be reflected in experienced credit performance.”
Following the trading update, shares in Close Brothers rose 0.4 per cent as markets opened.