Good News Britain: Close Brothers fills bank lending gap as profits rise The banking, asset management and stockbroking group posted pre-tax profits of £134.9m for the year to the end of July. That compared with £78.5m a year earlier when the company was hit by more than £50m of one-off costs, including a writedown on its investment in broker Mako. The group's banking division, which specialises in areas such as motor and small business loans, posted operating profits of £135m in the period, up from £106.3m a year earlier. Close Brothers" loan book grew 20pc to £4.1bn, while its bad debt ratio improved from 2.1pc to 1.5pc. The strong banking performance helped offset a weaker showing in its securities business, where operating profits fell to £24.5m from £54.8m a year earlier. Close Brothers said it had reduced costs by 30pc at its market-maker Winterflood, due to tough market conditions, with traders receiving lower bonus payments. Elsewhere, losses narrowed at the company's asset management unit from £8.6m to £4.3m. Preben Prebensen, chief executive, said: "This is the third year in a row that our banking business has performed strongly, showing there's always a place out there for alternative lenders. Our loans are typically small ticket and short term and are popular in periods when credit is not freely available. We don't see conditions changing in the market, so are optimistic about the business's performance over the next few months. Shares in the company closed down 5 at 845.5p, following a strong rally that has helped the stock put on more than 25pc over the past year. James Hamilton, analyst at Numis, remained upbeat on the prospects for Close Brothers" banking division. "While we expect the pace of growth to slow we continue to believe that the bank will be the prime driver of the group's growth," he added.