Close Brothers profit beats expectations as restructuring progresses

By Reuters News

Sept 29 (Reuters) - Close Brothers CBRO.L reported full-year adjusted operating profit ahead of estimates on Tuesday, as cost-cutting measures and a stabilising lending business helped offset the impact of motor finance compensation costs.


Here are more details:

  • The company reported full-year 2026 adjusted operating profit of £120.3 million ($159.28 million), ahead of a company-compiled consensus of £111 million

  • The lender is seeking to rebuild profitability after taking a substantial hit from the UK's motor finance compensation scheme

  • Close Brothers expects loan book growth of 5-10% in FY2027 and forecasts net interest margin to be slightly lower than in FY2026

  • The lender, which employs about 3,000 people across the UK and Ireland, had announced in March it would cut 200 jobs in 2026 and a further 400 in 2027 as it grapples with compensation costs imposed industry-wide by British regulators for undisclosed commissions and lender-dealer arrangements

  • The bank's Common Equity Tier 1 capital ratio, a key measure of financial strength, stood at 14.1% at the end of the year, ahead of its medium-term target range of 12%-13%


($1 = 0.7555 pounds)

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