Close Brothers FY 2026 adjusted operating profit falls 17% and will not pay final dividend
Close Brothers said preliminary FY 2026 adjusted operating profit fell 17% as income declined and it will not pay a final dividend due to uncertainty over motor finance redress. It forecasts FY 2027 underlying loan book growth of 5-10% and adjusted operating expenses of about £430 mln.
Close Brothers said preliminary FY 2026 adjusted operating profit fell 17% as income declined. Adjusted EPS for FY 2026 also fell, while the loan book was flat overall but grew in H2. The company will not pay a final dividend because of uncertainty over motor finance redress. For FY 2027, Close Brothers expects underlying loan book growth of 5-10% subject to market conditions and adjusted operating expenses of about £430 mln.
Close Brothers targets double-digit RoTE by FY 2028, rising thereafter. The company said lower income and profit reflected the repositioning of its business and prevailing market conditions. £36 mln of annualised savings, ahead of target, supporting lower expenses. Close Brothers said the loan book was flat, but underlying loan book grew 2% year on year and 4% in H2, with all divisions growing in Q4 after earlier declines.
1%. Close Brothers Group PLC's average analyst rating on the shares is "buy", with 4 "strong buy" or "buy" recommendations, 3 "hold" and no "sell" or "strong sell". The average consensus recommendation for the banks peer group is "buy". 00.
The stock recently traded at 7 times the next 12-month earnings, compared with a P/E of 8 three months ago. 30 mln.