Close Brothers Group Plc · LSE:CBG
Close Brothers — FY2026 Earnings Presentation
33 slides from Close Brothers's earnings presentation, Sep 29, 2026
Slide 1: Close Brothers Group plc Preliminary Results 2026
Close Brothers Group plc Preliminary Results 2026 29 September 2026
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Close Brothers Group plc (the “Company”) solely for information purposes and does not constitute, and should not be construed as, an offer or invitation to sell or issue securities or otherwise constitute an invitation or inducement or recommendation
Slide 3: Agenda
Agenda Introduction Financial update Strategy summary and conclusion Appendix Close Brothers Group plc Preliminary Results 2026 3
Slide 4: Introduction
Introduction Mike Morgan Group Chief Executive Officer Close Brothers Group plc Preliminary Results 2026 4
Slide 5: Close Brothers today
Close Brothers today A focused specialist bank providing lending and deposit-taking services that support growth across the UK and Ireland c.1.6 million Loan book (31 Jul 26) customers £9.5bn Commercial Funding solutions to SMEs through direct sales force and third-party distribution channels c.2,40
Slide 6: FY26: Delivering our commitments with continued confidence for FY28
FY26: Delivering our commitments with continued confidence for FY28 FY26 – guidance delivered Loan book growth resumed Accelerated cost savings • Strategy executed • 4% underlying1 growth in H2 • Annualised cost savings of • Targets met • All divisions grew in Q4 c.£36 million • Total annualised cos
Slide 7: Financial update
Financial update Fiona McCarthy Group Chief Finance Officer Close Brothers Group plc Preliminary Results 2026 7
Slide 8: Income statement: resilient trading performance
Income statement: resilient trading performance 2026 2025 Change Continuing operations £ million £ million % Continuing operations Adjusted operating income 642.9 681.2 (6) Adjusted operating expenses (430.9) (445.1) (3) Adjusted operating income reduction driven by the Adjusted impairment losses (9
Slide 9: Operating loss reflects adjusting items
Operating loss reflects adjusting items Adjusting items Material adjusting items (£ million) £164.7 million motor finance provision in FY26 £(180.6) million of adjusting items • Total provision now at c.£320 million • The ultimate cost to the group remains subject to the outcome of the legal challen
Slide 10: Our businesses
Our businesses Commercial1 Retail Property Adjusted operating income (year-on-year) £307.0m (3)% £226.4m (8)% £117.7m (10)% Underlying loan book (year-on-year)2 £4.9bn 3% £2.7bn 6% £1.8bn (5)% Net interest margin 6.4% (FY25: 6.6%) 7.9% (FY25: 8.3%) 6.5% (FY25: 6.9%) Year-on-year change in adjusted o
Slide 11: Loan book performance
Loan book performance Loan book movement by business1,2,3,4 Underlying loan book growth (£ million) Retail repositioning 1 Commercial Retail Property • Reported loan book flat at £9.5 billion • Underlying loan book increased 2% over the year, (51) 4% in the second half, excluding planned exit of 95
Slide 12: Robust net interest margin
Robust net interest margin Net interest margin Robust net interest margin (%) • NIM across the lending divisions robust and in line with guidance at 6.9% (FY25: 7.2%) 7.2 (0.1) • Reduction primarily reflects repositioning and changes in business mix, including the wind-down (0.1) of Novitas, the Pre
Slide 13: Operating from a structurally lower cost base
Operating from a structurally lower cost base Group adjusted operating expenses Strong cost discipline (£ million) • Adjusted operating expenses down 3% as we accelerated delivery of cost-saving initiatives • Adjusted operating expenses for FY26 materially 4 (6) lower than guidance 11 • Now operatin
Slide 14: Evolution of our cost base
Evolution of our cost base FY26 FY27 FY28 • Cost savings: c.£36 million • Expected cost savings: exceed • Cost savings more fully reflected, delivered £60 million target of total with expected adjusted operating annualised savings expenses at the lower end of • Adjusted operating expenses: £410-430
Slide 15: Solid credit performance
Solid credit performance Long-term average bad debt ratio1 Bad debt ratio at 1.0% Adjusted impairment charges stable at £92 million reflecting: 2.6% • The implementation of an updated IFRS 9 model in 2.4% 2.3% 2.2% Motor Finance 2.1% • Offset by an increase in individually assessed provisions in Pro
Slide 16: Strong balance sheet
Strong balance sheet Reduction in total funding and treasury assets reflects Total funding ongoing balance sheet optimisation • Continued normalisation of liquidity back to £11.4 billion Equity Unsecured funding 15% 12% FY22 levels Average maturity of funding allocated to loan book at 20 £11.4bn Sec
Slide 17: Strong capital position
Strong capital position 31 Jul 2026 31 Jul 2025 CET1 capital ratio increased even after taking additional motor finance commissions provision CET1 capital ratio1 14.1% 13.8% Tier 1 capital ratio1 16.3% 15.8% Total capital ratio1 19.1% 17.8% Lower RWAs through loan book reduction and Leverage ratio2
Slide 18: Financial targets
Financial targets New guidance for FY27; reiterating FY28 targets FY26 FY27 guidance Medium term c.-0.1% impact from mix, including Net interest margin 6.9% Premium Finance repositioning Slightly below 7% Loan book £9.5bn 5-10% underlying growth 5-10% growth p.a. through the cycle Bad debt ratio 1.0
Slide 19: Strategy summary and conclusion
Strategy summary and conclusion Mike Morgan Group Chief Executive Officer Close Brothers Group plc Preliminary Results 2026 19
Slide 20: Summary
Summary Simplify Optimise Grow Three core divisions Lower cost, more efficient Market growth opportunity operating model Attractive specialist markets Increase market share Scalable structure Strong, differentiated businesses New products and propositions with sustainable returns Tech-enabled modern
Slide 21: Strategic priorities: Simplify largely complete
Strategic priorities: Simplify largely complete Refocusing the group Stronger fundamentals 21 Sale of CBAM • Higher returns potential Sale of Winterflood • Further growth potential in chosen markets Sale of Brewery Rentals • Lower cost base with greater scope for efficiencies Winding down Vehicle Hi
Slide 22: Strategic priorities: Optimise - Transformation progress
Strategic priorities: Optimise - Transformation progress March 24 July 25 July 26 July 27 FY28 onwards Tactical actions £25 million annualised cost savings Business and functions focus Exceeding £60 million annualised cost savings by end of FY27 (Originally targeting c.£60 million by end of FY28) En
Slide 23: Strategic priorities: Grow - Commercial
Strategic priorities: Grow Commercial growth priorities Priorities: • Unibal's third Scottish battery project • Financing 27MW storage facility • Grow mature • Specialist Energy team businesses • Growth in emerging energy sector • Relaunched broker offering in Asset Finance • Scaling new products •
Slide 24: Strategic priorities: Grow - Retail
Strategic priorities: Grow Retail growth priorities Priorities: Motor: • Increased brokers to 575 Motor – • Grown Ireland market share from • Expanding reach 8.5% in 2024 to 13% • Expanding distribution • Ireland focus Premium – Premium: • Focus on commercial • New three-year strategic lines partner
Slide 25: Strategic priorities: Grow - Property
Strategic priorities: Grow Property growth priorities Priorities: • £20m revolving credit facility • Continued support of • Development of 52 homes build to sell • £47m gross development value • Larger deal focus • New relationship with an innovative housebuilder • Expanded offering - • Build-to-Ren
Slide 26: Conclusion
Conclusion Simplification largely complete Return to loan book growth in FY26 and expect FY27 underlying growth within the 5-10% range Accelerated cost savings delivered ahead of guidance in FY26 and expected to exceed target for FY27 03 Conclusion Clear strategy with a path to deliver double-digit
Slide 27: Appendix
Appendix
Slide 28: Appendix 1: Business overview - Commercial
Appendix 1: Business overview - Commercial Asset Finance Invoice Finance Commercial asset financing, hire Debt factoring, invoice discounting and Core proposition purchase and leasing solutions asset-based lending Distribution Direct – 67% Direct – 37% Intermediated – 33% Intermediated – 63%1 SME cu
Slide 29: Appendix 2: Business overview - Retail
Appendix 2: Business overview - Retail Motor Finance Premium Finance Used Cars, LCVs and other small vehicles Helping businesses and customers pay for Core proposition (e.g. Motorcycles) their insurance in monthly instalments Distribution Intermediated Intermediated Dealers / brokers ~3,500 (UK and
Slide 30: Appendix 3: Business overview - Property
Appendix 3: Business overview - Property Property Finance Commercial Acceptances • Residential Development Finance includes • Bridging Finance, including auction sales Build-to-sell (BTS), Build-to-rent (BTR), • Residential Refurbishment/Trading finance, Purpose-Built Student Accommodation including
Slide 31: Appendix 4: Optimise – Embedding AI and automation
Appendix 4: Optimise – Embedding AI and automation AI unlocking value for Close Brothers across five focus areas: Business processing – AI automated compliant Automate manual activities, improve Cost reduction processing and triage. 336k cases to date. More than accuracy and reduce operational effor
Slide 32: Appendix 5: Motor finance review timeline
Appendix 5: Motor finance review timeline Close Brothers motor finance commissions provision of c.£320 million remains largely unchanged since Q3 2026 H1 2025 Q1 2026 Q3 2026 FY 2026 Motor finance commissions £165m £300m £320 million c.£320 million provision balance 2024 financial year 2025 financia
Slide 33: Appendix 6: Sustainability
Appendix 6: Sustainability Our responsibility remains fundamental to our purpose, strategy and culture E E S G Our car fleet Our green lending Our inclusivity Our Board is now £1 billion+ 92% 56% 72% has been financed by our energy of our colleagues feel included female directors on the Board and me