20th Nov 2025 11:14
(Alliance News) - Close Brothers Group PLC on Thursday said its banking business continued to progress in the quarter to October but loan growth eased reflecting the uncertain external environment.
Chief Executive Mike Morgan commented: "We have made a solid start to the year and are progressing at pace with our cost reduction initiatives, focusing on the delivery of our strategic priorities to improve operational efficiency and drive growth."
Shares in the London-based bank were down 0.7% at 409.24 pence each in London on Thursday morning.
Close Brothers said the Banking business continued to deliver good underlying profitability in the three months to October, benefitting from a strong net interest margin, stable bad debt and an ongoing focus on costs.
The loan book decreased 1.1% in the quarter to GBP9.4 billion from GBP9.5 billion at July 31, reflecting the continuing impact on demand from the uncertain external environment.
"We delivered growth in our Asset Finance and Motor Finance businesses, which was offset by an increase in the level of repayments and lower volumes in Property Finance and Invoice Finance," the firm added.
Morgan said the firm continues to engage with the Financial Conduct Authority following the publication of their consultation in respect of motor finance commissions.
"We are committed to achieving a fair outcome for customers but do not believe the proposed redress methodology appropriately reflects actual customer loss or would deliver a proportionate and fair outcome in its current form," he added.
In October, Close Brothers nearly doubled its provision for motor finance compensation to GBP300 million from GBP165 million, which on Thursday the firm said remains its "best estimate."
The FCA consultation is open until December 12 with final rules for the redress scheme likely in February or March 2026.
By Jeremy Cutler, Alliance News reporter
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