UK lenders rise after FCA decision on motor finance claims

S&U

04/08/2025 08:56

** UK lenders Close Brothers CBRO.L, Secure Trust STBS.L, Lloyds LLOY.L, Barclays BARC.L, S&U PLC SUS.L rise

** LLOY, BARC up 5.7% and 1.7%, respectively; CBRO jumps 24.3%, marks steepest one-day pct climb since September 2024

** CBRO top gainer across London stocks

** STBS soars 19.1%, logs highest one-day pct gain since August 2022; SUS up 8%

** On Sunday, UK's Financial Conduct Authority proposed redress scheme for consumers with motor finance compensation claims, estimating costs of 9 bln-18 bln pounds ($12 bln-$23.9 bln)

** Lloyds, Close Brothers say they will keep provisions for motor finance claims under review

** JP Morgan sees current levels of provisions held by UK banks as sufficient against this potential liability

** YTD, LLOY, BARC, CBRO gains ~46%, ~35%, ~103%, respectively; STBS surges ~214%, SUS rises ~31%

($1 = 0.7530 pounds)

 (Reporting by Yamini Kalia in Bengaluru)

 ((Yamini.Kalia@thomsonreuters.com))