Close Brothers Group PLC

Latest Results (06.12.2025):

Close Brothers Group PLC — preliminary results for the year ended 31 July 2025 (full‑year 2025; announced 30 September 2025). The group reported a statutory operating loss before tax of £122.4m but an adjusted operating profit from continuing operations of £144.3m. Results were materially affected by a £165.0m provision for historical motor finance commissions and a further £33.0m provision for early settlement remediation; CET1 capital was 13.8% (c.14.3% pro‑forma after the Winterflood sale). Loan book fell 4% to c.£9.5bn; the board will not pay a final ordinary dividend for 2025.

Statutory vs adjusted profit

Adjusted operating profit (continuing operations) was £144.3m (‑14% year on year), while statutory operating loss before tax was £122.4m after adjusting items totalling £266.7m (including the £165.0m motor commissions charge and other remediation, rental losses and impairments).

Motor finance provisions & remediation

The group retained a £165.0m provision for motor finance commissions (reassessed post‑Supreme Court judgment) and recognised a separate £33.0m provision for proactive customer remediation related to early loan settlements; complaints/legal costs were £18.7m in 2025.

Capital, funding and liquidity

CET1 ratio was 13.8% at 31 July 2025 (c.14.3% pro‑forma reflecting Winterflood sale). Total funding was c.£12.7bn; treasury assets increased to £2.77bn and the group maintained an elevated liquidity position (12‑month average LCR ~1,012%).

Business performance and key metrics

Banking adjusted operating profit fell to £198.3m; adjusted operating income was £681.2m (‑2%), adjusted expenses £445.1m (+3%). Net interest margin remained strong at 7.2%; bad debt ratio stayed at 1.0%. Loan book declined to ~£9.5bn (‑4%).

Costs, savings and restructuring

The group delivered c.£25m of annualised savings to date and plans at least c.£20m of additional annualised savings per year for each of the next three years. c.£5–10m of restructuring costs are expected in FY2026.

Disposals, exits and strategic refocus

Close Brothers completed the sale of Close Brothers Asset Management, announced the sale of Winterflood (expected completion early 2026), sold Brewery Rentals and decided to exit the Vehicle Hire business; Premium Finance has been refocused towards commercial lines.

Earnings per share & dividend

Adjusted basic EPS (continuing operations) was 59.3p (2024: 75.8p). Basic EPS was a loss of (99.8)p for continuing operations and (66.9)p including discontinued operations. No final ordinary dividend will be paid for FY2025.

Outlook & guidance

Management expects FY2026 NIM slightly below 7%, bad debt ratio below the long‑term average of 1.2%, Group central loss around c.£50m, and group adjusted operating expenses targeted to be within £440–460m in FY2026, moving toward £410–430m by FY2028 as savings are realised.