Close Brothers 'resilient' in third quarter
Investment bank Close Brothers has kept its outlook broadly the same as it was at the end of the first half, with uncertain market conditions set to affect the securities and corporate finance divisions.
"Against a background of general market uncertainty and particularly challenging conditions in the credit markets, the group's performance continues to be resilient," said Close in an update for the three months ended 30 April.
The asset management business encountered "testing" conditions but funds held steady at £8.9bn, while there's been no significant increase in bad debts at the banking unit.
Within the securities division, stockbroker Winterflood continued as it did in the six months to December, but market conditions have deteriorated for German unit Seydler, with no improvement expected this financial year.
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Close called the corporate finance market "somewhat muted" despite a better third quarter, with no improvement in the restructuring market.
"We take comfort from the broad spread of our asset management activities although we expect raising new funds and attracting new assets in this climate to remain difficult," said the firm
"We continue to expect a solid second half performance from our banking division and we will be on guard for any possible increase in bad debts as a result of the deteriorating economic background."
