Close Brothers Group (LON: CBG) published a trading update Friday, ahead of its 2022 half-year end.
Close Brothers will publish its half-year results for the six months ending on January 31, 2022, on March 15, 2022. Close Brothers Group is a British merchant banking group, offering loans, deposits, wealth management, and securities trading.
The group saw good growth in the high-margin loan book in banking and continued growth momentum in Close Brothers Asset Management, although Winterflood trading revenue has moderated since the end of Fiscal Year 2021.
In banking, Close Brothers Group saw good demand across its businesses. The annualized net interest margin remained strong as the company continued to focus on its pricing discipline.
The Common Equity Tier 1 ratio was 15.7% as of December 31, 2021, well above the applicable minimum regulatory requirement.
The company said its major strategic investment programs are progressing well, and expects to deliver a strong first-half performance across all of its businesses.
Close Brothers Group CEO Adrian Sainsbury said, “We have seen good momentum in our business, as we continue to make the most of opportunities in our core markets. We are navigating the current environment effectively and remain confident that our proven and resilient model, supported by the hard work and expertise of our people, leave us well positioned to protect, grow and sustain our business over the long term.”
Wall Street’s Take
Two months ago, J.P. Morgan analyst Raul Sinha kept a Hold rating on CBG with a price target of 1,540p. This implies 21.6% upside potential.
Download the TipRanks mobile app now