Close Brothers grows assets under management to £16.6bn
Close Brothers’ asset management arm secures £1bn of new client capital in just five months as markets ticked upwards.
In an interim trading update published today, the UK merchant banking group revealed that assets under management in its advisory division stood at £16.6bn by the end of 2021, up from £15.6bn five months prior. The group’s banking division grew its loan book by 2.9 per cent to £8.69bn as Close Brothers achieved “good momentum” across divisions.
“We have seen good momentum in our business, as we continue to make the most of opportunities in our core markets,” said chief executive officer Adrian Sainsbury.
“We are navigating the current environment effectively and remain confident that our proven and resilient model, supported by the hard work and expertise of our people, leave us well positioned to protect, grow and sustain our business over the long term,” he added.
Close Brothers, which will publish half year results in full in March, said the group has “performed well” so far this year and expects to deliver a “sold first half performance” across business divisions. Nonetheless, the group said it remains mindful of “ongoing uncertainty” and “inflationary pressures.”
Steve Clayton, fund manager at HL Select:
“Close Brothers take a disciplined approach to lending, which has generated strong returns across the cycle,” said Steve Clayon, a fund manager at Hargreaves Lansdown Select.
“But no-one will be looking to push their forecasts higher on the back of today’s statement because it was closely in-line with market expectations, so perhaps no surprise that on a day when the wider market has opened rather queasily, Close Brothers shares are down 1.1 per cent in early trading,” he continued.
Shares are down by 10.91 per cent over the past six months.
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