Tighter control over credit helps Close Brothers profits rise

Tighter credit conditions in the country have been of assistance to Close Brothers, the financial services group, as they have seen the risk appetite among their clients fall, which has helped their banking division.

The annual profit of the company has just been announced as £135 million, and the company have benefited from the rather weak supply of credit that is currently available in the UK. They increased their loan book this year by 20 percent, with an increase to over £4 billion. The company focus on secure loans for small businesses, in areas such as financing for cars.

The Chief Executive of the company is Preben Prebensen and he is commented, “As a general rule, when the credit situation in the country tightens up, we do better. This year credit has been particularly tight, and we have seen a 20 percent growth. In the past we have seen a direct correlation between constricted supply of credit, and the growth of our business.

“In the long term, we are developing a strong model, and the model we have had in the past has worked very well, so we are going to be using this and future business plans. Over the last decade, we have seen an average growth of 10 percent a year, which is something that we are very pleased about.”

The market marker for retail brokers in the UK is Winterflood and they’ve stated that there has been a significant drop in volumes, because investors have moved away from small cap shares that are less liquid. The groups marking division in Germany, has seen a near 90 percent drop and its profit is fallen to just over £1 million.