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Close Brothers Group
(LSE:CBG)
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Rating:51Neutral
Price Target:
373.00 p
â–¼(-12.85% Downside)
Action:Reiterated
Date:09/30/26
The score is held back primarily by weakened financial performance (recent losses and shrinking revenue) despite improved leverage and strong recent cash generation. Technical indicators remain bearish (negative MACD with weak RSI/Stoch), limiting confidence in near-term momentum. Offsetting these, the latest earnings call provided a more constructive forward outlook on growth, costs, credit quality and capital, but this is tempered by expected NIM pressure and material Motor Finance legal/provision uncertainty.
Positive Factors
Cost efficiency
Cost savings delivered ahead of the initial target provide a durable route to improved operating leverage. If execution continues, the lower cost base can help offset inflation, support efficiency gains and strengthen returns as loan growth recovers.
Negative Factors
Persistent losses and revenue decline
The shift from prior profits to continuing losses, alongside a steep revenue contraction, indicates that current operations are not yet generating dependable earnings. This weakens internal capital formation and makes recovery dependent on successful restructuring and business growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost efficiency
Cost savings delivered ahead of the initial target provide a durable route to improved operating leverage. If execution continues, the lower cost base can help offset inflation, support efficiency gains and strengthen returns as loan growth recovers.
Read all positive factors
Close Brothers Group (CBG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£590.91M
Dividend Yield8.88%
Average Volume (3M)511.56K
Price to Earnings (P/E)―
Beta (1Y)1.97
Revenue Growth-11.82%
EPS Growth14.34%
CountryUK
Employees2,537
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.57
Shares Outstanding150,722,890
10 Day Avg. Volume352,354
30 Day Avg. Volume511,560
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)0.39
Price to Sales (P/S)0.75
P/FCF Ratio1.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£480.00Price Target Upside12.15% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.55
Revenue Forecast (FY)£655.30M
Close Brothers Group Business Overview & Revenue Model
Company Description
Close Brothers Group plc is a long-established UK-based merchant bank, dedicated to providing a comprehensive range of financial solutions to individuals and small enterprises across the United Kingdom. Its operations are strategically segmented i...
Close Brothers Group Earnings Call Summary
Earnings Call Date:Sep 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 16, 2027
Earnings Call Sentiment Positive
The call was strategically optimistic, with management highlighting recovered loan growth, strong cost execution, improving credit metrics, robust capital and liquidity, and confidence in achieving double-digit returns by FY28. However, current-year income and profit declined, NIM is expected to fall further, the Motor Finance redress provision and legal uncertainty remain significant, Property faces market and impairment challenges, and no FY26 final dividend was declared. Overall, the positive strategic and forward outlook outweighed the stated financial and regulatory challenges.Positive Updates
Strategic Progress and Specialist-Bank Positioning
The group said it had made significant progress against its strategy to simplify, optimize and grow, supporting 1.6 million customers with a GBP 9.5 billion loan book across Commercial, Retail and Property. Simplification is now largely complete following the disposals of Asset Management, Winterflood and Brewery Rentals, the closure of Novitas and the winding down of Vehicle Hire.
Negative Updates
Lower Operating Income and Profit
Adjusted operating income decreased 6% to GBP 643 million, primarily reflecting the deliberate repositioning of the business, lower net interest margin and a lower average loan book. Adjusted operating profit fell to GBP 120 million from GBP 144 million.
Read all updates
Q4-2026 Updates
Positive
Negative
Strategic Progress and Specialist-Bank Positioning
The group said it had made significant progress against its strategy to simplify, optimize and grow, supporting 1.6 million customers with a GBP 9.5 billion loan book across Commercial, Retail and Property. Simplification is now largely complete following the disposals of Asset Management, Winterflood and Brewery Rentals, the closure of Novitas and the winding down of Vehicle Hire.
Read all positive updates
Company Guidance
For FY ’27, Close Brothers expects underlying loan book growth within its 5% to 10% target range, subject to market conditions, group costs of approximately GBP 430 million, NIM slightly below FY ’26, reflecting a further circa 0.1% impact from mix, including Premium Finance repositioning, a bad debt ratio below its long-term average of 1.2%, a modest increase in RoTE, and CET1 within its 12% to 13% target range after absorbing Basel 3.1 and loan book growth; restructuring costs are expected to be approximately GBP 30 million to GBP 40 million in FY ’27, other Motor Finance commissions-related costs are expected to be broadly similar, and annualized savings are expected to exceed GBP 60 million by the end of FY ’27. By FY ’28, costs are expected to be at the lower end of the guidance range of GBP 410 million to GBP 430 million, supporting an EI ratio below 60% and double-digit RoTE, rising thereafter.Close Brothers Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 846.40M | 1.20B | 1.35B | 1.32B | 1.12B |
| Gross Profit | 290.40M | 566.70M | 793.00M | 1.01B | 1.01B |
| EBITDA | 19.20M | 18.40M | 244.40M | 220.20M | 333.10M |
| Net Income | -63.40M | -77.90M | 100.40M | 81.10M | 165.20M |
Balance Sheet | |||||
| Total Assets | 12.06B | 14.07B | 14.08B | 13.55B | 12.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.19B | 1.92B | 1.58B | 2.21B | 1.38B |
| Total Debt | 1.91B | 2.51B | 2.36B | 2.99B | 3.03B |
| Total Liabilities | 10.41B | 12.53B | 12.24B | 11.91B | 11.02B |
| Stockholders Equity | 1.65B | 1.54B | 1.84B | 1.64B | 1.66B |
Cash Flow | |||||
| Free Cash Flow | 345.10M | 345.80M | -426.50M | 631.20M | -259.80M |
| Operating Cash Flow | 348.00M | 351.10M | -382.00M | 693.10M | -201.40M |
| Investing Cash Flow | 279.80M | 61.40M | -1.15B | -603.60M | -243.70M |
| Financing Cash Flow | -1.34B | -155.20M | 513.40M | 736.80M | 391.50M |
Close Brothers Group Technical Analysis
Positive
428.00
Price Trends
399.64
Negative
413.92
Negative
435.23
Negative
Market Momentum
-4.63
Negative
54.52
Neutral
78.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CBG, the sentiment is Positive. The current price of 428 is above the 20-day moving average (MA) of 385.63, above the 50-day MA of 399.64, and below the 200-day MA of 435.23, indicating a neutral trend. The MACD of -4.63 indicates Negative momentum. The RSI at 54.52 is Neutral, neither overbought nor oversold. The STOCH value of 78.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CBG.
Close Brothers Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | £2.28B | 12.42 | 9.51% | 5.33% | 3.88% | 11.86% | |
74 Outperform | £2.40B | 11.23 | 48.99% | 5.39% | 3.14% | 4.67% | |
68 Neutral | £3.25B | 8.95 | 19.10% | 4.41% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | £11.44B | 8.01 | 13.45% | 6.24% | -3.55% | 5.64% | |
59 Neutral | £1.95B | 25.89 | 16.86% | 1.97% | 16.10% | 21.35% | |
51 Neutral | £590.91M | -6.97 | -4.07% | 8.88% | -11.82% | 14.34% |
* Financial Sector Average
GB:CBG
Close Brothers Group
395.20
-40.60
-9.32%
GB:CMCX
CMC Markets
699.00
491.42
236.74%
GB:IGG
IG Group Holdings
966.50
-121.11
-11.14%
GB:INVP
Investec
616.50
66.77
12.15%
GB:PLUS
Plus500
3,410.00
338.13
11.01%
GB:TCAP
TP ICap
322.80
72.54
28.98%
Close Brothers Group Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Close Brothers grants new LTIP share awards to senior executives
Neutral
Oct 19, 2026
Close Brothers Group plc has granted 2026 share awards under its Omnibus Share Incentive Plan, specifically the Long Term Incentive Plan, to executive directors and other senior managers. The awards are priced using an average share price of £...
Financial DisclosuresShareholder Meetings
Close Brothers Publishes 2026 AGM Notice and Annual Report
Neutral
Oct 16, 2026
Close Brothers Group has circulated its notice for the 2026 Annual General Meeting along with the annual report and accounts for the year ended 31 July 2026. The AGM will take place at the company’s London headquarters on 19 November 2026, w...
Executive/Board Changes
Close Brothers Executives Exercise LTIP Options and Adjust Shareholdings
Neutral
Oct 15, 2026
Close Brothers Group has disclosed share transactions by senior executives under long-term incentive plans. The transactions involve ordinary shares of 25p each in the company, traded on the London Stock Exchange.Group chief executive Michael Morg...
Regulatory Filings and Compliance
Close Brothers Discloses Share Option Exercise by Senior Risk Executive
Neutral
Oct 12, 2026
Close Brothers Group has disclosed a transaction by Timothy Renshaw, the Group Head of Non-Financial Risk, involving ordinary shares of 25 pence each in the company. The notification, made under regulatory requirements for persons discharging mana...
Regulatory Filings and Compliance
Close Brothers Discloses HR Executive’s Share Option Exercise and Sale
Neutral
Oct 7, 2026
Close Brothers Group has disclosed a transaction involving Group Head of Human Resources, Rebekah Etherington, in line with regulatory requirements for senior managers’ dealings. Etherington exercised share options granted under the 2021 Lon...
Business Operations and StrategyRegulatory Filings and Compliance
Close Brothers executives add shares under incentive plan
Positive
Oct 6, 2026
Close Brothers Group has reported a series of routine share acquisitions by senior executives under its Share Incentive Plan, indicating ongoing alignment of management interests with those of shareholders. Group Head of Human Resources Rebekah Et...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Close Brothers Publishes 2026 Annual Report and Sets November AGM
Neutral
Oct 2, 2026
Close Brothers Group has published its Annual Report and Accounts 2026, making the document available on its website and through the UK National Storage Mechanism, and will distribute it to shareholders ahead of the forthcoming Annual General Meet...
Financial DisclosuresRegulatory Filings and Compliance
Close Brothers Publishes 2026 Pillar 3 Regulatory Disclosures
Positive
Oct 2, 2026
Close Brothers Group has published its Pillar 3 disclosures for the financial year ended 31 July 2026, detailing key regulatory capital and risk information for investors and regulators. The report is accessible via the company’s website and...
Regulatory Filings and Compliance
Close Brothers Updates Share Capital and Voting Rights Figure
Neutral
Oct 1, 2026
Close Brothers Group plc has confirmed that as of 30 September 2026 its total issued listed share capital stands at 152,060,290 ordinary shares of 25p each, of which 1,337,406 shares are held in treasury. This leaves 150,722,884 ordinary shares ca...
Business Operations and StrategyDividendsFinancial DisclosuresLegal Proceedings
Close Brothers Tightens Focus as Costs Fall and Capital Buffers Rise Amid Motor Finance Fallout
Negative
Sep 29, 2026
Close Brothers Group reported preliminary results for the year to 31 July 2026 that reflect a major strategic reshaping of the business, with an adjusted operating profit of £120.3 million, down 17% year-on-year, and a statutory operating los...
Other
Close Brothers executives add shares under incentive plan
Positive
Sep 9, 2026
Close Brothers Group has disclosed a series of small share acquisitions by senior executives under its Share Incentive Plan. The transactions, conducted on 7 September 2026 and notified on 8 September, involved purchases of ordinary shares at 424p...
Regulatory Filings and Compliance
Close Brothers updates share capital and voting rights totals
Neutral
Sep 1, 2026
Close Brothers Group has reported that as of 31 August 2026 its total issued listed share capital stands at 152,060,290 ordinary shares, of which 1,340,307 are held in treasury. This leaves 150,719,983 ordinary shares in circulation with full voti...
Regulatory Filings and Compliance
Close Brothers Executives Acquire Shares Under Incentive Plan
Neutral
Aug 6, 2026
Close Brothers Group plc has disclosed a series of share acquisitions by senior executives under its Share Incentive Plan. On 5 August 2026, ordinary shares of 25p each were purchased on the London Stock Exchange at 434p per share for several pers...
Regulatory Filings and Compliance
Close Brothers updates shareholders on total voting rights
Neutral
Aug 3, 2026
Close Brothers Group plc has reported that as at 31 July 2026 its total issued listed share capital comprised 152,060,290 ordinary shares of 25 pence each. Of this total, 1,345,294 ordinary shares are held in treasury, leaving 150,714,996 ordinary...
Regulatory Filings and Compliance
Close Brothers CFO Exercises Share Options and Sells Stock to Cover Tax
Neutral
Aug 3, 2026
Close Brothers Group has disclosed a transaction involving its Group Chief Finance Officer, Fiona McCarthy, who exercised options over 3,441 ordinary shares under the 2023 Deferred Annual Bonus plan. As part of the transaction on 31 July 2026, she...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Close Brothers Sets New Chair and Senior Independent Director in Board Succession Plan
Positive
Jul 31, 2026
Close Brothers Group has announced a planned leadership transition, with long-serving chairman Mike Biggs stepping down after nine years at the conclusion of the November AGM. Senior Independent Director Mark Pain, who brings more than three decad...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.