Close Brothers Group (CBG) Trading Update summary

Financial performance and capital position

• CET1 capital ratio rose to 14.0% at 30 April 2025, above the medium-term target range, driven by lower risk-weighted assets and the CBAM sale benefit.

• Banking division's loan book decreased 0.9% in Q3 and 3.5% year-to-date to £9.7bn, with growth in Invoice Finance and Motor Finance offsetting declines elsewhere.

• Net interest margin year-to-date was 7.1%, with full-year guidance around 7%.

• Bad debt ratio remained below the long-term average at 0.9%, reflecting resilient credit performance.

• Diverse funding base increased to £12.9bn, with liquidity substantially above regulatory requirements.

Operational highlights and cost management

• Annualised cost savings of approximately £25m expected by year-end, with further efficiency initiatives planned.

• Central functions reported net expenses of £13.9m in Q3, reflecting elevated professional fees related to the FCA's motor finance review and Supreme Court appeals.

• Focus remains on simplification, operational efficiency, and sustainable growth.

Business segment updates

• Winterflood returned to operating profit in Q3 (£0.4m) after a loss in H1, benefiting from increased market activity.

• Motor Finance new business volumes recovered to pre-October 2024 levels after a temporary pause.

• Loan book expected to be broadly flat at year-end compared to 31 January 2025.