UPDATE 2-Collins Stewart profit up, gives cautious outlook

* Maintains half-year div at 1.3 pence

* Says making progress despite tough markets

* Charles Stanley also warns of uncertain conditions

* Collins Stewart shares down 2.7 pct

(Updates with CEO interview, adds Charles Stanley results)

By Sudip Kar-Gupta

LONDON, July 29 (Reuters) - British broker and financial services group Collins Stewart CLST.L said market uncertainty meant it was keeping a cautious outlook after its wealth management and corporate finance arms boosted first-half profit.

Pretax profit for the six months ended June 30 rose 6.6 percent from last year to 6.5 million pounds ($10.15 million), while operating profit rose 20 percent to 7.3 million pounds.

It maintained its half-year dividend at 1.3 pence.

"In what are pretty difficult markets, we are making steady progress. I wouldn't say it's spectacular progress, but it's steady progress," Chief Executive Mark Brown said.

PRIORITY ON WEALTH MANAGEMENT

Stockbrokers and investment banks around the world have had to endure turbulent trading conditions as a sovereign debt crisis rocked financial markets.

Last week, rival brokerage Close Brothers (CBRO.L) said it was confident of having a solid performance for 2010 but added there was margin pressure on its Winterflood securities arm. [ID:nLDE66M094]

On Thursday, British stockbroker and fund manager Charles Stanley (CAY.L) posted higher revenue but also warned of an uncertain market environment. [ID:nWLA9606] [ID:nRSc1116Qa]

"We've got better margins, but it's tough," said Collins Stewart CEO Brown.

Brown said the wealth management business, where Collins Stewart recently made the small-scale acquisitions of Corazon and Andersen Charnley companies [ID:nSGE65G084], remained the its top priority.

Brown said it could make further wealth management acquisitions in the longer term, although new deals were unlikely in the near future since the company would focus on the integration of the Corazon and Andersen Charnley businesses.

"Wealth management has got the best returns in any of our businesses," he said.

Collins Stewart shares were down 2.7 percent at 73 pence at 0716 GMT. ($1=.6402 Pound) (Editing by Will Waterman and Erica Billingham)