Close Brothers' profits plunge as volatility hits Winterflood business

CBAM saw £844m net inflows

Close Brothers saw its profits drop by 13% in the year to July as its Winterflood business was hit by volatile markets and a decline in trading activity.

The group's adjusted operating profit reduced to £234.8m from £270.7m in the 12 months to July as Winterflood was struck by a 77% plunge in profits to £14.1m, down from £60.9m last year. The core banking division grew its earnings by 7% to £227m, but the firm also recorded weakness in the asset management division. Adjusted operating profit for Close Brothers Asset Management was down 8% to £21.7m, due to negative market movements hitting revenues in the second half of the year, as well as higher staff costs. Close Brothers meets expectations but 'no-one will push forecasts higher'...