Merchant banking group Close Brothers saw profits shrink by 18 per cent in the year to July as its Winterflood business was hammered by volatile markets and a slowdown in trading activity.
Profits after tax at the firm fell to £165.2m from £202.1m in the 12 months to July as Winterflood was hit by a 77 per cent plunge in profits to £14.1m, down from £60.9m last year.
The firm’s retail and property banking divisions were similarly hit by a slowdown, falling 15 and 14 per cent to £61m and £75m, respectively. Commercial banking profits buoyed the firm however, rising 72 per cent to £91m.
Bosses at the London-listed banking group said it had showed resilience in the face of a volatile period on markets this year.
”Against a backdrop of continued market uncertainty, we have delivered a solid performance,” said chief executive Adrian Sainsbury.
“The Banking division has performed well as we continued to see good demand across our lending businesses and strong margins. CBAM was affected by falling markets but continued to attract client assets.”