Close Brothers' share price drops six per cent, despite hiking its dividend after reporting a 10 per cent fall in assets under management

Billy Bambrough
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Investors have not looked kindly on Close Brothers results (Source: Getty)

Mixed results at Close Brothers Group have failed to impress investors, who have sent the share price six per cent lower this morning.

Assets under management dropped by 10 per cent in the six months to January, from £10bn to £9.1 bn as volatile market conditions begin to bite and not helped by a disposal in November.

The company had hoped to appease investors with a six per cent hike in its dividend per share.

8 March 2016 @ 3:15pmClose Brothers Group (CBG)

Adjusted operating profits were two per cent up over the year at £111.2m, while the bank's loan book grew by four per cent to £6bn in the period.

The company’s securities division Winterflood recorded a drop in adjusted operating profits of 34 per cent to £6.8m, though the asset management division reported a rise in adjusted operating profit of 65 per cent to £8.4m despite the outflows.

Close Brothers is not the first asset manager to come under pressure from market swings in the last six months.

Chief executive Preben Prebensen said the results were satisfactory:

We have a long track record of growth and profitability throughout the cycle and our businesses remain well positioned against the current backdrop of economic and political uncertainty. We continue to see growth opportunities for our lending businesses, both in existing markets and through new initiatives. We continue to actively invest to protect and extend our successful business model, while maintaining our focus on strong margins, prudent underwriting and good returns.

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