Close Brothers Group's five-month loan book rises

(Reuters) - British lender Close Brothers Group (CBRO.L) said its loan book grew about 5 percent in the five months ended Dec. 31, even as net interest margins remained lower than a year earlier.

The company, which lends to small and medium-sized businesses and gives investment management advice, said its loan book at its banking division rose to 6 billion pounds for the five months ended Dec. 31, 2015, from 5.7 billion pounds at the end of July.

Total client assets fell to 9.4 billion pounds from 10.8 billion pounds at the end of July.

Market maker Winterflood was impacted by difficult market conditions since the beginning of the financial year, Close Brothers said.

Global financial markets were hit by increased volatility in the second half of last year because of increased speculation over interest rates and fears of economic weakness in emerging markets.

Falling equity markets and lower levels of activity, particularly in London's junior Alternative Investment Market, hurt profits, the company said.

Market conditions have been weaker in the first half ending Jan. 31, the company said, but it was confident of a "satisfactory outcome" for the full year.

Close Brothers said there were continued opportunities for growth in its banking arm, but trading conditions at its market maker remained difficult.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier and Sunil Nair)