Brexit and Trump Bump help trading at Close Brothers

Close Brothers, the grand old merchant bank, has seen a boom in trading at its market-making arm Winterflood.

Close — founded in 1878 — is the latest City name to say it is on the up in the wake of June’s EU referendum result and the shock Donald Trump election victory in the US.

Figures for the last quarter show the banking arm is also doing well.

Winterflood was set up in 1988 by City legend Brian Winterflood, who retired after 60 years in the Square Mile last April.

The bank follows other City firms in saying the summer months were good for business.

Its traders have been busy. Close said: “Winterflood has continued to see increased investor risk appetite and retail trading activity, particularly in August and September.” The loan book rose 2.7% to £6.6 billion in the quarter, and bad debts fell “markedly”.

The rise in the market helped funds under management rise by £200 million to £8.2 billion.

Shares in Close Brothers rose 22p to 1372p, leaving the bank valued at more than £2 billion.

“Although the macroeconomic outlook remains uncertain, at this stage we are confident in delivering a good outcome for our 2017 financial year,” Close Brothers said.

Chief executive Preben Prebensen was “not available” to speak to the Standard.