UK's Close Brothers drops on higher motor finance provision

Close Brothers

14/10/2025 08:42

** Shares of lender Close Brothers CBRO.L down 2.1% at 437.6 p vs FTSE Mid 250 index's .FTMC 0.28% slide

** Co expects additional charge of around 135 mln pounds ($179.12 mln) in relation to motor finance probe in the UK

** Says charge increases total provision to approximately 300 mln pounds

** CBRO among lenders being investigated in the UK for allegedly selling unfair car loans

** Co expects additional provision to reduce CET1 capital ratio by approximately 130 bps on a pro-forma basis as of 31 July 2025

** FCA said last week the British motor finance industry is on the hook for 8.2 to 9.7 bln pounds to compensate consumers for unfair car loans

** YTD, up to Monday's close, stock up nearly 89% vs FTMC up nearly 7%

($1 = 0.7537 pounds)

 (Reporting by Simone Lobo in Bengaluru)

 ((((Simone.Lobo@thomsonreuters.com; +919920570373;))