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28 Sep, 2021 08:08

Close Brothers reports sharp profit rise

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Close Brothers reported a sharp rise in annual profit and a hefty dividend increase as the financial services group benefited from rising income and lower impairments.

Operating pretax profit rose 88% to £265.2m in the year to the end of July from a year earlier as operating income increased 10% to £952.6m. Impairment losses on financial assets fell 51% to £89.8m and banking profit more than doubled to £212.5m from £99.2m.

The FTSE 250 group proposed a final dividend of 42p a share taking the annual payout to 60p a share - a 50% increase from a year earlier.

Income increased at all divisions with banking boosted by high new business volumes and the net interest margin strengthening to 7.7% from 7.5%. Asset management income rose 9% and the Winterflood securities business produced a 20% revenue increase helped by high trading volumes.

Chief Executive Adrian Sainsbury said: "We have delivered a strong financial performance in the year and made the most of the opportunities arising as the economy recovers from the effects of Covid-19. We are encouraged by the improvement in the economic outlook, although the trajectory remains uncertain."

Close Brothers shares fell 0.9% to £15.61 at 08:05 BST. The shares have gained more than 50% in 2021.


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Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.