Close Brothers has seen net inflows of 8 per cent for its asset management division in its half year results.
In a trading update yesterday (March 15), for the six months to January 31, 2022, Close Brothers said its asset management arm achieved strong net inflows, with adjusted operating profit up 18 per cent to £14.5mn, an increase from £12.3mn during the same period last year.
The division, which appointed a new chief executive earlier this month, also saw income increase 14 per cent, driven by favourable market conditions and strong net inflows, with managed assets reaching £15.8bn, up from £15.6bn at July 31, 2021.
However, Close Brothers’ securities business Winterflood saw a reduction in trading income, resulting in a 74 per cent reduction in operating profit to £8.8mn, down from £34.2mn during the same period last year.
Elsewhere, adjusted operating profit increased marginally to £129.8mn, up from £128.5mn, as higher adjusted operating profit in banking and the asset management division were offset by a reduction in Winterflood.
The group's income remained broadly stable at £471.6mn, compared to £474mn in H1 2021.
Adrian Sainsbury, group chief executive officer, said: "We delivered a good performance in the first half of the 2022 financial year, with strong income growth in the banking division and positive momentum in asset management, while Winterflood saw reduced trading opportunities following the exceptional highs experienced during the Covid-19 period.
“We are pleased to declare an interim dividend of 22p, returning to the pre-pandemic level and reflecting the group's strong underlying performance and continued confidence in our business model.”
He added: “Looking ahead, we are mindful of the highly uncertain external environment, including the impact of increasing geopolitical tensions and rising inflation on our customers and wider financial market conditions. Nevertheless, we remain well placed to continue delivering on our long track record of profitability and disciplined growth."
Last year, Close Brothers Asset Management bought Surrey-based IFA PMN Financial Management as part of its growth strategy.
sonia.rach@ft.com
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