Business
Half Year Results for six months to 31.1.2023
Half Year Results for six months to 31.1.2023.
About this update from Close Brothers Group Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Half Year Results for the Six Months to 31 January 2023\n \n \n \n \n 14 March 2023\n \n \n \n \n \n \n \n \n Adrian Sainsbury, Chief Executive, said:\n \n \n \n \n \n \n \n \n \n \"It has been a challenging six months, with our half year results significantly impacted by the increased provisions in relation to Novitas, as announced previously in January 2023. While this is clearly disappointing, our underlying business remains resilient, enabling us to support almost three million customers, including over 360 thousand SMEs, as we continue to lend consistently through this period of uncertainty.\n \n \n \n \n \n \n \n \n \n We are encouraged by the good demand and strong margins seen in Banking, as well as the underlying credit quality of our loan book. We continued to attract new client assets in CBAM, with healthy net inflows, and although trading activity remained subdued at Winterflood, WBS sustained its positive momentum. We are pleased to declare an increased interim dividend of 22.5p per share, reflecting our underlying performance and the Board's confidence in the group's outlook.\n \n \n \n \n \n \n \n \n \n Our financial strength leaves us well placed to move forward and resume our track record of earnings growth and returns.\"\n \n \n \n \n \n \n \n \n \n Financial performance in the first six months\n \n \n \n \n \n \n \n \n ·\n As previously announced, we have taken steps to resolve the issues surrounding Novitas, resulting in an additional provision of £89.8 million, with the total provisions in relation to Novitas taken in H1 2023 at £114.6 million. As a result, statutory operating profit before tax decreased to £11.7 million (H1 2022: £128.9 million). Excluding Novitas, adjusted operating profit decreased to £117.5 million (H1 2022: £160.5 million)\n \n \n ·\n We achieved 5% income growth in Banking with a strong net interest margin of 8.0% (H1 2022: 7.9%) and good levels of customer demand, particularly in Commercial. As a result, pre-provisions, adjusted operating profit in Banking increased 5% to £177.2 million (H1 2022: £168.5 million)\n \n \n \n \n \n ·\n Although underlying credit performance remains resilient, the increased uncertainty in the economic outlook has been reflected in hig...