All statements in this release relate to continuing operations1 over the five months to 31 December 2018 unless otherwise indicated.
Group and divisional performance
The group has achieved a solid performance overall, notwithstanding the difficult trading conditions for our market facing businesses.
The Banking division has continued to perform well and in line with expectations, as we focus on maintaining our disciplined approach to lending and investing to maximise the long-term potential of our businesses.
The loan book grew 3.1% in the period to £7.5 billion (1 August 2018: £7.2 billion2), driven by good new business volumes across the Commercial businesses and in Premium Finance.
Impairment charges remained low, with strong credit performance across all businesses. The net interest margin has remained broadly stable since the last financial year, reflecting our continued pricing discipline.
Winterflood has continued to deliver solid profitability, but volumes and trading income have been significantly lower than the prior year reflecting difficult and volatile equity market conditions, particularly in December.
Asset Management has continued to achieve good net inflows, although these were more than offset by negative market movements, resulting in a 3% decline in managed assets to £10.0 billion at 31 December 2018 (31 July 2018: £10.4 billion) and a decrease in total client assets to £11.7 billion (31 July 2018: £12.2 billion).
Outlook
Overall, we expect a solid outcome for the first half, and remain well positioned for the remainder of the financial year.
About Close Brothers
Close Brothers is a leading UK merchant banking group providing lending, deposit taking, wealth management services and securities trading. We employ around 3,300 people, principally in the UK. Close Brothers Group plc is listed on the London Stock Exchange and is a member of the FTSE 250.