Demand for loans and financing from small and medium-sized businesses is growing for the first time since the financial crisis began in 2008, the boss of Close Brothers bank said today.
“For the past few years we have been growing by taking market share,” said Preben Prebensen.
“Now for the first time we are not just hearing anecdotal evidence but actually seeing demand from small business growing.”
Close has some 25,000 small business borrowers and Prebensen said it had seen growing demand from the print, transport and manufacturing sectors.
Solid growth in its banking business helped Close grow operating profits by 16% to £106 million with earnings up 19% to 58.2p a share.
The interim dividend goes up 9% to 18p a share.
Close’s market-making business Winterfloods had a tough half to end-January with profit down 23% at £10.3 million.
“People look at the FTSE 100 and assume that will be reflected in small-cap stocks,” said Prebensen.
“In fact the AIM index fell 10% in the six months and in October lost 9% in nine days. It was hit by Scottish independence worries…oil price shocks and currency swings.
"But we know that when the business comes back Winterfloods will do well.”
