The asset finance division of Close Brothers saw its loan book expand by 8.5% in the year ending 31 July 2015 compared to the previous year, according to the company’s preliminary results.
The value of the loan book reached £1.796bn (2.47bn) by the 31 of July, compared to £1.656bn at the year ending 31 July 2014.
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The company attributed the growth of its asset finance loan book to good levels of new business across all sectors and the "benefits" of their growth initiatives in Ireland and energy finance.
"Asset finance continues to deliver good growth due to our strong customer relationships and direct lending capabilities," the company added.
On the other hand, Close Brothers’ invoice finance loan book shrunk by 3.7% year-on-year to £376.6m.
As a result of the changes in the loan books of the asset and invoice finance divisions, Close Brothers’ Commercial loan book increased by 6.1% year-on-year to £2.173bn.
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By GlobalDataThe company wrote: "In 2015 we have taken advantage of favourable market conditions to strengthen our funding position whilst at the same time reducing the overall funding costs for our business. We have further diversified our funding sources by drawing down £375 million from the government’s Funding for Lending Scheme secured against a portion of the asset finance loan book. We have also renewed £945 million of facilities and since the year end we have completed a private placement of a 25 million bond."
The Close Brothers Group recorded a 15% increase in pre-tax operating profit for the year ending 31 of July compared to the same period in the previous year, which reached £219.9m.
Preben Prebensen, chief executive of Close Brothers, said: "We are pleased to report another year of strong performance for Close Brothers with good results across all of our businesses. After successive years of exceptional growth the group is in better shape than ever, which means we are well positioned to invest in supporting and extending our tried and tested business model and continue to deliver sustainable growth over the long term."
