Close Brothers Group Plc. (CBG.L) reported that its preliminary loss before tax from continuing operations for the year ended 31 July 2025 was 122.4 million pounds, compared to a profit of 132.7 million pounds in the previous year. The decline was primarily due to adjusting items related to motor finance commissions, including a 165.0 million pounds provision charge and 18.7 million pounds in costs associated with complaint handling, operational matters, and legal expenses. Additionally, a 33.0 million pounds provision was recorded for the Motor Finance customer remediation programme concerning early loan settlements. Adjusted operating profit for the year decreased 14% to 144.3 million pounds from last year's 167.6 million pound, reflecting a decline in income and higher costs.The company has decided to exit its Vehicle Hire business, which has been loss-making in a challenging market environment. Combined with the impact of declining asset values, this has led to an impairment charge of 30.0 million pounds.
The company said it has achieved 25 million pounds in annualised cost savings and expect to deliver at least 20 million pounds in additional annualised savings each year over the next three years. The Group anticipates an operating loss of approximately 50 million pounds from central functions in the 2026 financial year, reflecting reduced legal and professional fees.
Due to ongoing uncertainty surrounding the FCA's review of motor finance commission arrangements and its potential financial impact, the Group will not pay a final dividend on its ordinary shares for the 2025 financial year.
Close Brothers Group's loss attributable to shareholders for the year ended 31 July 2025 was 100.2 million pounds or 66.9 pence per share compared to net income of 89.3 million pounds or 59.5 pence per share in the prior year.
Adjusted earnings per share for continuing operations was 59.3 pence compared to 75.6 pence in the prior year.
Net interest income for the year was 568.8 million pounds down from 580.7 million pounds in the prior year. Non-interest income for the year declined to 90.7 million pounds from 132.7 million pounds in the previous year.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.