Close Brothers Group (LON:CBG) Posts Earnings Results

Posted by Brenda Bartman on Sep 29th, 2026

Close Brothers Group (LON:CBG – Get Free Report) announced its quarterly earnings data on Tuesday. The company reported GBX 47.50 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 Stock Up 12.8%

CBG stock opened at GBX 435.60 on Tuesday. The company has a market cap of £656.54 million, a price-to-earnings ratio of -12.34, a P/E/G ratio of 1.87 and a beta of 1.24. Close Brothers Group has a twelve month low of GBX 318.40 and a twelve month high of GBX 556.15. The business has a 50 day moving average price of GBX 415.72 and a two-hundred day moving average price of GBX 425.05.

Insider Activity

In other news, insider Fiona McCarthy sold 1,626 shares of the stock in a transaction that occurred on Friday, July 31st. The stock was 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 Analysts Forecast Growth

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

Get Our Latest Analysis on Close Brothers Group

About Close Brothers Group

(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.