(adds details, quotes)
March 14 British lender Close Brothers Group
reported a 21 percent rise in first-half adjusted
operating profit, driven by strength in its core banking
business and higher trading income from market maker
The merchant banking group, which provides loans, wealth
management and securities trading services, said on Tuesday
adjusted operating profit rose to 134.2 million pounds ($162.87
million) for the six months to Jan. 31 from 111.2 million a year
The company also said Mike Biggs was to become chairman
effective May 1, succeeding Strone Macpherson, who confirmed his
intention to step down on April 30.
Close Brothers, founded in 1878 as a merchant bank to
provide farm mortgages in Iowa, is now a specialist lender to
small-and-medium size businesses in Britain.
It operates three divisions covering banking, wealth
management and securities trading. About 90 percent of its
profit comes from its banking business.
The loan book at the banking division rose to 6.5 billion
pounds from 6.4 billion pounds at the end of July.
Total client assets at the asset management arm rose to 10.2
billion pounds from 9.9 billion at the end of July, driven by
acquisition of two independent financial advisory businesses
during the period.
Market maker Winterflood more than doubled its profit from
the year earlier period, helped by strong retail trading.
"Macroeconomic and financial market conditions in (the) UK
remain benign, but we continue to monitor developments
carefully", the company said in a statement.
The lender said it would pay a 5 percent higher interim
dividend of 20 pence per share.
($1 = 0.8240 pounds)
(Reporting by Justin George Varghese and Noor Zainab Hussain in
Bengaluru; Editing by Jason Neely and Mark Potter)