The group attributed the drop in assets to negative market movements and the disposal of its corporate activities. The period saw investor jitters ripple through stock markets worldwide, primarily led by fears of a slowdown in China and anticipation of a US interest rate hike. Still, the asset management division delivered “solid” net inflows, the firm said, though no figures were given.

Meanwhile, Close Brothers' banking division enjoyed a 4.9 rise from the end of July to £6 billion at the end of September despite a lower net interest margin.

Winterflood, the group's securities business, saw its performance suffer since the beginning of the financial year, the group said. Falling equity markets and lower levels of activity, particularly in London's Alternative Investment Market, knocked profitability in the period.

“Market conditions have been weaker in the first half but we remain confident in a satisfactory outcome for the year,” the group said in the update. “In asset management, we expect continued progress in the business, notwithstanding difficult market conditions.”