London · Delayed Price · Currency is GBP · Price in GBX Close Brothers Group Earnings Call Transcripts
Fiscal Year 2026
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Loan book growth resumed with all divisions expanding in Q4, cost savings exceeded targets, and capital position remains robust. No dividend declared due to ongoing legal uncertainty over motor finance redress, but double-digit returns targeted by FY 2028.
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Resilient first-half performance with adjusted operating profit of GBP 65.2 million and strong capital position (CET1 14.3%), despite a statutory loss driven by motor finance commission provisions. Transformation and cost savings are ahead of plan, with a clear path to double-digit RoTE by 2028.
Fiscal Year 2025
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Capital position strengthened with CET1 at 13.8% and £400m generated or preserved. Adjusted operating profit fell 14% to £144m, impacted by £267m in adjusting items, including motor finance provisions. Portfolio simplification and cost-saving initiatives position the group for double-digit ROTE by FY 2028.
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Underlying profit remained robust with strong margins and credit quality, but a £165m motor finance provision led to a statutory loss. CET1 capital ratio is strong at 13.4% pro forma, and cost-saving initiatives are on track. Uncertainty remains around motor finance commission outcomes.
Fiscal Year 2024
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Resilient FY 2024 performance with adjusted operating profit up 50% and strong loan book growth. Capital actions, including the sale of CBAM and cost initiatives, aim to boost CET1 to 14–15% amid FCA review uncertainty. NIM guidance for FY 2025 is 7.2%.