Close Brothers said Monday that full year pre-tax profit had plunged by almost a third as it confirmed that Colin Keogh, chief executive, was to step down after six years. The London-based investment bank said operating profit before tax for the year to July 31 was below market expectations at £127.5m. This was after £10m of exceptional costs incurred during talks with potential acquirors and during subsequent restructuring. Last year’s pre-tax profit of £190.2m was boosted by £21.1m of exceptional income from a private equity transaction. Despite sharp falls in profits in three of its four divisions, Close is to raise its final dividend, bringing the total increase for the year to 5%. The group said it had delivered “a resilient performance” in a year of unusually challenging conditions but warned of a further increase in bad debts, with volatile markets and weak sentiment hitting performance in asset management. Keogh meanwhile said it was a good time to begin the search for his successor.

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