Close Brothers Group (LON:CBG) Issues Earnings Results

Close Brothers Group (LON:CBG) issued its quarterly earnings data on Tuesday. The company reported GBX 27.10 earnings per share for the quarter, Digital Look Earnings reports. Close Brothers Group had a negative net margin of 8.70% and a negative return on equity of 5.83%.

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

• The group booked an incremental £135m charge (bringing the total Motor Finance Commission provision to £300m), producing a statutory loss after tax of £64.4m and leaving the final cost dependent on the FCA’s redress rules.
• Management has accelerated its transformation, targeting ~£25m of annualized savings in 2026 and ~£60m by end‑2027 (ahead of plan), with an expected c.600 FTE reduction and a stated path to double‑digit ROTE by 2028.
• Capital and funding remain robust with a reported CET1 ratio of 14.3% after provisions, a leverage ratio of 13.5%, a post‑period £250m Tier 2 issuance, and an expected <10% RWA impact from Basel 3.1 — management says this provides headroom to absorb a range of FCA outcomes.
• Operationally the half was mixed — loan book down 2% (1% underlying) while motor and asset finance grew, NIM was strong at 7.1%, bad debt ratio 80bps, and management guides loan growth of 5%–10% through the cycle with group costs around £450m in 2026 falling to £410m–£430m by 2028.

Close Brothers Group Price Performance

CBG opened at GBX 343.40 on Tuesday. The stock’s 50 day moving average price is GBX 490.07 and its 200 day moving average price is GBX 473.01. The stock has a market cap of £516.97 million, a P/E ratio of -5.13, a P/E/G ratio of 1.87 and a beta of 1.18. Close Brothers Group has a 12 month low of GBX 246.80 and a 12 month high of GBX 563.50.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CBG. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Close Brothers Group from GBX 550 to GBX 570 and gave the stock a “buy” rating in a research note on Friday, January 23rd. Peel Hunt reaffirmed an “add” rating and set a GBX 300 price objective on shares of Close Brothers Group in a report on Tuesday, November 25th. Royal Bank Of Canada raised Close Brothers Group to an “outperform” rating and boosted their target price for the company from GBX 475 to GBX 625 in a report on Friday, January 16th. Finally, Shore Capital Group reissued a “hold” rating and issued a GBX 510 target price on shares of Close Brothers Group in a research report on Thursday, November 20th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of GBX 502.50.

Insider Activity at Close Brothers Group

In related news, insider Mike Morgan acquired 2,841 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were acquired at an average cost of GBX 507 per share, for a total transaction of £14,403.87. Insiders acquired 2,902 shares of company stock worth $1,469,952 over the last quarter. 2.19% of the stock is currently owned by company insiders.

About Close Brothers Group

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.