LONDON (ShareCast) - Close Brothers' has confirmed chief executive Colin Keogh is to stand down after a tough year for the bank.

Profits tumbled in tough markets, especially for its fund management arm, with "difficult market conditions to continue to affect the group's performance in the current financial year", Keogh said.

The group, which received a number of bid approaches earlier in the year, posted profits of £127.5m, down from £190.2m, in the year to July, with operating profits down from £172.9m to £137.5m.

In asset management, funds under management dropped 10% to £8.2bn, with the operating profit down 42% to £32.6m. This performance reflects weak financial markets in 2008 and compares to a particularly strong private equity performance in 2007, Close said.

Corporate finance profits fell 56% to £10m reflecting weaker market conditions in the UK, while market maker Winterflood's operating profit fell 12% to £38.7m.

Banking, though, upped its contribution by 4% to £74.5m with the loan book up 14% to £2.2bn. The bad debt ratio was up at 1.3% (2007: 1.1%). "For the first time in a number of years we see real opportunities for both organic and acquired growth in our banking division," Keogh said.

He has been chief executive for the past six years and will leave when a successor is found.

The dividend for the year is 39p, up 5%.

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