Profits Gain At UK's Close Brothers

Tom Burroughes, Group Editor, London, 27 September 2016


The UK wealth manager logged a rise in profits for the year ending 31 July, it said today.

UK-listed Close Brothers said today that it logged an adjusted profit of £233.6 million ($303.4 million) in the year to 31 July, a 4 per cent year-on-year increase, while its operating pre-tax profit of £228.5 million also rose 4 per cent over this period.

The UK firm, which provides wealth management and other services, said total client assets at 31 July stood at £9.9 billion, an 8 per cent fall over the period. The figure was affected by Close Brothers' disposal of its corporate advice and investment management business, which included £1.3 billion of assets.

After 31 years with the group, Stephen Hodges has decided to retire and will step down from his position as chief executive of the banking division and a director of the group, effective 17 November, the date of the Annual General Meeting. 

Following the AGM, Preben Prebensen will assume the role of chief executive of the banking division, in addition to his current role as group chief executive. 

“We are pleased to report a good performance for the 2016 financial year, with further growth in our earnings and dividend against a backdrop of more challenging market conditions," Prebensen said in a statement.

We achieved good growth in all our lending businesses, while maintaining the strong returns and prudent underwriting criteria which underpin our long track record of profitability throughout the economic cycle," he said.

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