Close Brothers Group (LSE:CBG) has increased its provision to roughly £300 million in response to the Financial Conduct Authority’s (FCA) proposed industry-wide redress scheme for motor finance commissions. The revised figure reflects both a higher likelihood of historical cases qualifying for redress and the potential for increased compensation payouts.
Despite the additional financial charge, the group emphasized its robust capital position, with a CET1 ratio well above regulatory minimums. Close Brothers continues to engage with the FCA over the methodology of the proposed scheme, arguing that it does not accurately reflect actual customer losses or established legal precedents.
The company’s outlook is supported by strong technical momentum and positive corporate developments, suggesting favorable investor sentiment and strategic clarity. However, ongoing financial performance pressures and valuation concerns weigh on the overall assessment. Strengthening revenue growth and managing cash flow effectively will be key to ensuring long-term financial stability.
About Close Brothers Group
Close Brothers Group is a UK-based specialist banking organization offering lending, deposit-taking, and securities trading services. It employs around 3,000 people, primarily in the UK and Ireland, and is listed on the London Stock Exchange as part of the FTSE 250 index.
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