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Close Brothers Group ( (GB:CBG) ) has shared an update.
Close Brothers Group has estimated that the Financial Conduct Authority’s new motor finance consumer redress scheme would result in a provision of about £320 million, broadly in line with its existing £294 million IAS 37 provision. The bank said this cost can be comfortably met from current capital resources, with the scheme expected to trim its CET1 ratio by around 25 basis points to 14.0%, still above its 12–13% medium‑term target.
The estimate is based on roughly 720,000 qualifying UK motor finance loans written between April 2007 and November 2024, an average redress of about £500 per customer and a 75% claim rate, as well as around £66 million of delivery costs. Close Brothers has not yet adjusted its provision and will continue reviewing it in light of further legal, regulatory and industry developments, stressing that it remains well positioned to execute its strategy and deliver long‑term value for shareholders despite the potential redress bill.
The most recent analyst rating on (GB:CBG) stock is a Hold with a £411.00 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.
Spark’s Take on CBG Stock
According to Spark, TipRanks’ AI Analyst, CBG is a Neutral.
The score is held back primarily by deteriorating profitability (revenue drop and net loss) and higher leverage, alongside bearish technicals with broad downtrend signals. A rebound in cash flow and a low P/E provide some offset, but not enough to outweigh the fundamental and momentum risks.
To see Spark’s full report on CBG stock, click here.
More about Close Brothers Group
Close Brothers Group is a UK specialist banking group focused on lending and deposit taking, operating primarily in the United Kingdom and Ireland. Listed on the London Stock Exchange and a constituent of the FTSE 250 index, the group employs around 2,600 people and provides niche financing solutions across selected markets, including motor finance.
Average Trading Volume: 574,557
Technical Sentiment Signal: Sell
Current Market Cap: £612.8M
See more insights into CBG stock on TipRanks’ Stock Analysis page.