May 22, 2020 / 6:53 AM / 16 days ago

BRIEF-Close Brothers Says In Banking, Loan Book Down 1.2% To £7.53 Bln In Q3

May 22 (Reuters) - Close Brothers Group PLC:

* SCHEDULED TRADING UPDATE

* IN BANKING, LOAN BOOK REDUCED BY 1.2% TO £7.53 BILLION IN Q3 (31 JANUARY 2020: £7.62 BILLION)

* NET INTEREST MARGIN DECREASED SLIGHTLY TO 7.7% YEAR-TO-DATE (H1 2020: 7.8%)

* BAD DEBT CHARGE WAS £86.7 MILLION IN Q3 (H1 2020: £36.7 MILLION)

* BAD DEBT RATIO OF 2.1% YEAR-TO-DATE (H1 2020: 0.9%)

* ASSET MANAGEMENT CONTINUED TO ACHIEVE GOOD ANNUALISED NET INFLOWS OF 10% YEAR-TO-DATE (H1 2020: 12%)

* Q3 MANAGED ASSETS WERE IMPACTED BY NEGATIVE MARKET MOVEMENTS, REDUCING TO £11.8 BILLION (31 JANUARY 2020: £12.7 BILLION)

* WINTERFLOOD EXPERIENCED A SUBSTANTIAL INCREASE IN TRADING VOLUMES SINCE COVID-19 OUTBREAK

* WINTERFLOOD RECORDING Q3 DAILY AVERAGE VOLUMES ALMOST DOUBLE THOSE IN FIRST HALF

* GROUP MAINTAINS A STRONG CAPITAL, FUNDING AND LIQUIDITY POSITION

* COMMON EQUITY TIER 1 CAPITAL RATIO OF 13.9% (31 JANUARY 2020: 13.4%) PROVIDES 580BPS HEADROOM ABOVE MINIMUM REQUIREMENT

* WILL CONSIDER PAYMENT OF A FULL YEAR DIVIDEND IN RESPECT OF FINANCIAL YEAR TO 31 JULY 2020 IN SEPT

* IN Q3, IN BANKING DIVISION LOAN BOOK REDUCED REFLECTING IMPACT OF PANDEMIC ON NEW BUSINESS LEVELS, PARTICULARLY IN APRIL

* HAVE NOT MADE USE OF CORONAVIRUS JOB RETENTION SCHEME AS NONE OF OUR EMPLOYEES HAVE BEEN FURLOUGHED

* LOWER ACTIVITY LEVELS & FEE INCOME IN APRIL DUE TO COVID-19 RESULTED IN SLIGHT REDUCTION IN NET INTEREST MARGIN IN Q3

* Q3 LEVERAGE RATIO REMAINED VERY STRONG AT 11.0% (31 JANUARY 2020: 11.3%) Source text for Eikon: Further company coverage:

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