Close Brothers sees bad debts dip

"The bad debt ratio improved marginally during the five months to 30 June 2010 although remains sensitive to the economic environment," the company said in a trading statement ahead of the end to its financial year.

"The group remains confident that it will deliver a solid overall performance for the 2010 full financial year," it added.

The bank said its loan book had grown to 2.9bn by the end of June from 2.6bn at the end of January, driven by asset finance growth at its commercial division and motor and premium finance among retail customers.

Close described the performance at its asset management division as subdued relative to its first half with assets under management flat at 7.3bn.

"The investment spend in support of the private clients growth initiative continues, which will also lead to a further negative impact on the (asset management) division's result in the next financial year," it added.

Close Brothers said its securities division had performed well but that more difficult trading conditions were experienced later in the period.