Close Bros soars but stays cautious

A SURGE in profits from market-making and deal-making boosted first-half pre-tax profits at independent investment bank Close Brothers by 46% to £57.8m.

Profits from market-making through the Winterflood offshoot soared from £9.3m to £19.9m. The corporate finance arm more than tripled its profits from £1.4m to £4.5m.

The fund management arm lifted its profits from £4m to £7.2m, and increased funds under management to £5bn after winning £300m of net new business.

Chairman Sir David Scholey said the investment banking businesses' fortunes had improved since the end of the long bear market, adding that the outlook was 'much improved'.

But Close sounded a note of caution by leaving the dividend unchanged again and declining to hint at a rise for the full year even if the bull run continues.