Close Brothers Group (LON:CBG) Announces Quarterly Earnings Results

Posted by Geri Gentry on Sep 29th, 2026

Close Brothers Group (LON:CBG – Get Free Report) announced its earnings results 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 2.50% and a negative return on equity of 2.03%.

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 Price Performance

Shares of CBG opened at GBX 432.42 on Tuesday. Close Brothers Group has a 1 year low of GBX 318.40 and a 1 year high of GBX 556.15. The stock has a 50 day simple moving average of GBX 415.72 and a two-hundred day simple moving average of GBX 425.05. The firm has a market cap of £651.74 million, a P/E ratio of -12.25, a P/E/G ratio of 1.87 and a beta of 1.24.

Analyst Ratings Changes

Separately, Royal Bank Of Canada downgraded shares of Close Brothers Group to a “sector perform” rating and dropped their price objective for the stock 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 given a Hold rating to the stock. According to data from MarketBeat, Close Brothers Group presently has an average rating of “Moderate Buy” and an average target price of GBX 481.25.

Read Our Latest Stock Analysis on Close Brothers Group

Insider Activity at Close Brothers Group

In other Close Brothers Group news, insider Fiona McCarthy sold 1,626 shares of the company’s stock in a transaction dated Friday, July 31st. The shares were sold at an average price of GBX 426, for a total transaction of £6,926.76. Company insiders own 2.21% of the company’s stock.

Close Brothers Group Company Profile

(Get Free Report)

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.