- Financial services company Close Brothers flagged a jump in bad loan provisions across its businesses due to the the impact of Covid-19.

Bad loan provisions jumped to £86.7m in the third quarter from £36.7m reported in the first half, with a bad debt ratio of 2.1% year-to-date, up from 0.9%.

In its banking business, the company's loan book reduced 1.2% to £7.53bn in the third quarter.

Close Brothers said its net interest margin decreased slightly to 7.7% year-to-date from 7.8% in the first half of the year, reflecting the 'impact of Covid-19 on new business levels and lower fee income, particularly in April'.

In its asset management business, annualised net inflows grew 10% year-to-date, while managed assets were impacted by negative market movements, reducing to £11.8bn from £12.7bn in the second quarter.

Winterflood, meanwhile, experienced a substantial increase in trading volumes since the Covid-19 outbreak recording third quarter daily average volumes almost double those in the first half.

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