Close Brothers profit beats expectations as restructuring progresses

Sept 29 (Reuters) — Close Brothers reported full-year adjusted operating profit ahead of estimates on Tuesday, as cost-cutting measures and a stabilising lending business helped offset the impact of motor finance compensation costs. Here are more details: The company reported full-year 2026 adjusted operating profit of £120.3 million ($159.28 million), ahead of a company-compiled consensus of £111 million The lender is seeking to rebuild profitability after taking a substantial hit from the UK's motor finance compensation scheme Close Brothers expects loan book growth of 5-10% in FY2027 and forecasts net interest margin to be slightly lower than in FY2026 The lender, which employs about 3,000 people across the UK and Ireland, had announced in March it would cut 200 jobs in 2026 and a further 400 in 2027 as it grapples with compensation costs imposed industry-wide by British regulators for undisclosed commissions and lender-dealer arrangements The bank's Common Equity Tier 1 capital ratio, a key measure of financial strength, stood at 14.1% at the end of the year, ahead of its medium-term target range of 12%-13% ($1 = 0.7555 pounds) (Reporting by Atharva Singh in Bengaluru;.