Business
Preliminary results for the year end 31 July 2020
Preliminary results for the year end 31 July 2020.
About this update from Close Brothers Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6542Z\n Close Brothers Group PLC\n 22 September 2020\n \n \n \n \n \n Preliminary Results for the year ended 31 July \n \n \n 2020 \n \n \n \n 22 September 2020\n \n \n \n \n \n Highlights\n \n \n \n ·\n The group delivered a resilient performance overall, reflecting the disciplined application of our business model in a challenging environment\n \n \n \n \n \n ·\n The loan book remained broadly stable at £7.62 billion (31 July 2019: £7.65 billion), reflecting an increase in activity since the easing of lockdown restrictions in June and July\n \n \n \n \n \n · \n While we remained focused on our pricing and underwriting discipline, income in the year was impacted by lower activity levels and forbearance measures, resulting in a net interest margin of 7.5% (2019: 7.9%)\n \n \n \n \n \n ·\n Impairment charges increased to £183.7 million (2019: £48.5 million) primarily reflecting the forward-looking recognition of impairment charges under IFRS 9 to incorporate the impact of Covid-19, resulting in a full year bad debt ratio of 2.3% (2019: 0.6%)\n \n \n \n \n \n · \n Adjusted operating profit in the Banking division decreased 61% to £99.2 million (2019: £253.7 million) primarily due to higher impairment charges\n \n \n \n \n \n ·\n The Asset Management division generated net inflows of 9% as we continued to attract client assets and new hires despite the challenging market conditions. Adjusted operating profit decreased 6% to £20.4 million (2019: £21.8 million)\n \n \n \n \n \n ·\n Winterflood delivered an excellent trading performance, making the most of significantly higher volumes since the Covid-19 outbreak and achieved operating profit of £47.9 million (2019: £20.0 million), up 140%\n \n \n \n \n \n ·\n The group maintained a strong capital, funding and liquidity position. Our common equity tier 1 (\"CET1\") capital ratio of 14.1% (31 July 2019: 13.0%) provides over 600bps of headroom above the minimum requirement\n \n \n \n \n \n ·\n The board is proposing a 40.0p dividend in respect of the full financial year. This reflects the board's confidence in the group's business model and strong financial position, notwithstanding the current uncertain environment\n \n \n \n \n \n \n \n \n \n \n \n \n \n Key Financia...