The interim management statement for the period to 31 October said the growth reflects market movements and net inflows during the quarter, with the revenue margin broadly stable on the previous financial year.
At end July, the Asset Management division's AUM of £9.1bn also reported an adjusted operating income of £78.1m, following on from its preliminary full-year results in September, when Close revealed that its restructure had paid off with a return to profitability.
Winterflood, the group’s securities trading arm which is a UK equities market maker, an investment trust advisory services provider and operates dealing, custody and settlements services claimed to benefit from improved market conditions and increased retail investor trading activity.
Close said this reflected early signals of recovering market sentiment and more favourable trading conditions, while heightened Aim trading had resulted in income per bargain, and average bargains per day, increasing.
Close’s Banking division saw a 3% growth to its loan book over the quarter, from £4.6bn to £4.8bn at 31 October, with good growth across all its businesses, and bed debt improving over the quarter, largely driven by property.
The statement said the group maintained its solid funding, liquidity and capital positions.
It said: “We have made a positive start to the year. We continue to see good growth opportunities for the Banking division and remain focused on maintaining the quality of our lending model. Winterflood has maintained its market leading position and is well placed to benefit if current market conditions are sustained throughout the year. Asset Management remains on track as the division continues to progress towards our medium-term targets. Overall, we remain confident in the outlook for the current financial year.”
