Close Brothers Group (LON:CBG) Announces Earnings Results

Close Brothers Group (LON:CBG) released its quarterly earnings data on Tuesday. The company reported GBX 47.50 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Close Brothers Group had a negative net margin of 7.56% and a negative return on equity of 4.07%.

Here are the key takeaways from Close Brothers Group’s conference call:

• Loan growth regained momentum, with underlying growth of 2% for FY2026 and 4% in the second half; all three divisions grew in the fourth quarter. Management expects FY2027 growth of 5%–10%, subject to market conditions.
• The cost-reduction program is ahead of schedule, delivering approximately £36 million of annualized savings versus a £25 million target. Close Brothers now expects to exceed £60 million of annualized savings by the end of FY2027 and achieve double-digit ROTE by FY2028.
• Capital and credit metrics remained resilient, with a 14.1% CET1 ratio, robust liquidity, and a 1.0% bad debt ratio below the 1.2% long-term average. Management expects credit quality to remain sound in FY2027, although Basel 3.1 is expected to reduce CET1 by about 80 basis points.
• FY2026 adjusted operating profit fell to £120 million from £144 million as income declined 6%, reflecting business repositioning, lower margins, and a smaller average loan book. Net interest margin is expected to decline by a further approximately 0.1% in FY2027 due to business mix changes.
• The board did not declare a final dividend for FY2026 because of continued uncertainty surrounding the FCA motor-finance redress scheme and related legal challenges. The provision remains approximately £320 million, with the ultimate cost still dependent on the outcome of the proceedings.

Close Brothers Group Stock Performance

Shares of LON:CBG opened at GBX 397.80 on Friday. Close Brothers Group has a 12-month low of GBX 318.40 and a 12-month high of GBX 556.15. The firm has a market cap of £599.56 million, a PE ratio of -11.27, a price-to-earnings-growth ratio of 1.87 and a beta of 1.24. The company has a fifty day simple moving average of GBX 415.63 and a 200 day simple moving average of GBX 425.05.

Insiders Place Their Bets

In other news, insider Fiona McCarthy sold 1,626 shares of the business’s stock in a transaction dated Friday, July 31st. The shares were sold at an average price of GBX 426, for a total value of £6,926.76. 2.21% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Separately, Royal Bank Of Canada lowered shares of Close Brothers Group to a “sector perform” rating and reduced their target price for the company from GBX 625 to GBX 470 in a report on Monday, July 6th. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 481.25.

Close Brothers Group Company Profile

Close Brothers Group plc, a merchant banking company, engages in the provision of financial services to small businesses and individuals in the United Kingdom. It operates through five segments: Commercial, Retail, Property, Asset Management, and Securities. The company offers banking services comprising of debt factoring, invoice discounting, asset-based lending; financing for SMEs, residential housing, transport, industrial equipment, renewable energy, motorcycle, used car, and commercial vehicle financing; insurance, refurbishment, and bridging financing, savings products for individuals and corporates, hire purchase, lease, and loan related services.