Close Brothers Group PLC Enhanced Segmental Disclosures (4310X)
February 21 2017 - 6:00AM
UK Regulatory
TIDMCBG
RNS Number : 4310X
Close Brothers Group PLC
21 February 2017
Press Release
Enhanced Segmental Disclosures
21 February 2017
The group and particularly the Banking division have grown
significantly in recent years. Therefore, we now believe it is
appropriate to increase the level of financial disclosure for the
three operating segments within the Banking division.
This announcement sets out the planned changes and provides
comparative figures for these segments in advance of the group's
2017 half year results announcement on 14 March 2017. These
enhancements to our reporting do not reflect any changes to the
structure of the group and will have no effect on the reported
group financial statements or the Banking division as a whole.
The three operating segments in the Banking division are Retail
Finance (motor and premium finance), Commercial Finance (asset and
invoice finance) and Property Finance (residential development and
bridging finance). In addition to existing income disclosure for
each of these three operating segments, we will report adjusted
operating profit and key performance ratios. The analysis of the
loan book by line of business given in previous results
announcements will remain unchanged.
The Securities and Asset Management operating segments will
remain unchanged.
The following pages set out the comparative figures for the
Banking segments for FY 2016 and H1 2016. All figures are before
the charge for amortisation of intangible assets on acquisition,
and therefore on our normal adjusted basis.
Enquiries
Sophie Gillingham Close Brothers Group plc 020 7655 3844
Eva Hatfield Close Brothers Group plc 020 7655 3350
Liya Dashkina Close Brothers Group plc 020 7655 3468
Andy Donald Maitland 020 7379 5151
About Close Brothers
Close Brothers is a leading UK merchant banking group providing
lending, deposit taking, wealth management services and securities
trading. We employ around 3,000 people, principally in the UK.
Close Brothers Group plc is listed on the London Stock Exchange and
is a member of the FTSE 250.
BANKING DIVISION TOTAL (Unchanged)
H1 2016 FY 2016
GBPm GBPm
--------------------------------- -------- --------
Operating income 248.7 511.2
Operating expenses (123.6) (250.3)
Impairment losses on loans and
advances (16.7) (37.9)
---------------------------------- -------- --------
Operating profit 108.4 223.0
---------------------------------- -------- --------
Net interest margin 8.3% 8.2%
Expense/income ratio 50% 49%
Bad debt ratio 0.6% 0.6%
Closing loan book 5,969 6,432
Operating lease assets 140 160
Average loan book and operating
leases 5,987 6,226
RETAIL FINANCE
H1 2016 FY 2016
GBPm GBPm
---------------------------- -------- --------
Operating income 100.4 204.6
Operating expenses (53.3) (107.7)
Impairment losses on loans
and advances (8.2) (17.8)
----------------------------- -------- --------
Operating profit 38.9 79.1
----------------------------- -------- --------
Net interest margin 8.7% 8.6%
Expense/income ratio 53% 53%
Bad debt ratio 0.7% 0.7%
Closing loan book 2,332 2,511
Average loan book 2,299 2,388
COMMERCIAL FINANCE
H1 2016 FY 2016
GBPm GBPm
--------------------------------- ---- -------- --------
Operating income 97.2 202.3
Operating expenses (57.2) (116.2)
Impairment losses on loans
and advances (6.5) (16.5)
--------------------------------------- -------- --------
Operating profit 33.5 69.6
--------------------------------------- -------- --------
Net interest margin 8.2% 8.2%
Expense/income ratio 59% 57%
Bad debt ratio 0.6% 0.7%
Closing loan book 2,278 2,463
Operating lease assets 140 160
Average loan book and operating
leases 2,359 2,460
PROPERTY FINANCE
H1 2016 FY 2016
GBPm GBPm
---------------------------- -------- --------
Operating income 51.1 104.3
Operating expenses (13.1) (26.4)
Impairment losses on loans
and advances (2.0) (3.6)
----------------------------- -------- --------
Operating profit 36.0 74.3
----------------------------- -------- --------
Net interest margin 7.7% 7.6%
Expense/income ratio 26% 25%
Bad debt ratio 0.3% 0.3%
Closing loan book 1,358 1,457
Average loan book 1,329 1,378
DEFINITIONS
The following definitions used in this release are unchanged
from previous reporting:
Adjusted: adjusted measures are used to increase comparability
between periods by excluding amortisation of intangible assets on
acquisition, and any goodwill impairments and exceptional items
Expense/income ratio: total adjusted operating expenses on
adjusted operating income
Bad debt ratio: impairment losses on average net loans and
advances to customers and operating lease assets
Net interest margin: net income generated by lending activities,
including net interest income, net fees and commissions and net
operating lease income (deducting depreciation), on average net
loans and advances to customers and operating lease assets
This information is provided by RNS
The company news service from the London Stock Exchange
END
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