Eurozone jitters weigh on Brewin Dolphin’s income

Greece's prime minister Alexis Tsipras arrives for his first cabinet meeting yesterday. His government wants to end budget cuts and tax rises

The wealth management firm, which has a large office in Leeds, grew funds under management and made good progress towards its targets during the first quarter, despite continuing market volatility impacting commission income.

The future of the eurozone returned to the fore this week after Greek voters elected anti-austerity party Syriza to form a new government in Athens.

David Nicol, chief executive, said: “Despite tough market conditions in the first quarter the group has made good progress growing overall funds under management, in particular in our discretionary service, while continuing to invest in the business to drive future growth.

“Strong growth in fee income was driven by organic fund inflows and positive investment performance.

“However total income growth in the quarter was impacted by a material decline in commission income as a result of lower transaction volumes due to volatile market conditions.

“Continued market volatility from global economic concerns coupled with political uncertainty in the UK and Europe is likely to persist in the short term.

“This may lead to a continuation of the trend for lower transaction volumes and associated commission income.

“Our outlook remains positive as we continue to implement our transformation and growth strategy.”

Matthew Wells, divisional director in Leeds, said the Yorkshire office is seeing good levels of organic growth delivered through new business leads and referrals from existing clients, financial advisers, accountants and solicitors.