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Close Brothers Increases Provision for Motor Finance Redress Scheme

Story Highlights
  • Close Brothers increases its provision to £300 million for motor finance redress.
  • Despite the charge, Close Brothers maintains strong capital strength above regulatory needs.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Close Brothers Increases Provision for Motor Finance Redress Scheme

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Close Brothers Group ( (GB:CBG) ) has issued an update.

Close Brothers Group has reviewed the potential financial impact of the Financial Conduct Authority’s proposed industry-wide redress scheme for motor finance commissions. The company has increased its provision to approximately £300 million, reflecting a higher likelihood of historical cases qualifying for redress and potentially higher compensation levels. Despite the additional charge, Close Brothers remains confident in its capital strength, with a CET1 ratio significantly above regulatory requirements. The group plans to continue engaging with the FCA regarding the proposed redress methodology, which it believes does not align with actual customer loss or legal precedents.

The most recent analyst rating on (GB:CBG) stock is a Hold with a £500.00 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Spark’s Take on GB:CBG Stock

According to Spark, TipRanks’ AI Analyst, GB:CBG is a Neutral.

Close Brothers Group’s stock score is primarily driven by strong technical indicators and positive corporate events, which suggest a favorable market sentiment and strategic alignment. However, financial performance challenges and valuation concerns moderate the overall score. The company’s ability to address revenue growth and cash flow management will be crucial for future stability.

To see Spark’s full report on GB:CBG stock, click here.

More about Close Brothers Group

Close Brothers is a UK specialist banking group that provides lending, deposit taking, and securities trading services. The company employs approximately 3,000 people, primarily in the United Kingdom and Ireland, and is listed on the London Stock Exchange as a constituent of the FTSE 250.

Average Trading Volume: 914,188

Technical Sentiment Signal: Hold

Current Market Cap: £652.1M

For detailed information about CBG stock, go to TipRanks’ Stock Analysis page.

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