Close Brothers Group Plc · LSE:CBG
Close Brothers — Q2 2026 Earnings Presentation
19 slides from Close Brothers's earnings presentation, Mar 17, 2026
Slide 1: Close Brothers Group plc Half Year Results 2026
Close Brothers Group plc Half Year Results 2026 17 March 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 to sell or issue securities or otherwise constitute an invitation or inducement to any person to purchase, unde
Slide 3: Agenda
Agenda Introduction Financial update Conclusion Close Brothers Group plc Half Year Results 2026 3
Slide 4: Introduction
Introduction Mike Morgan Group Chief Executive Officer Close Brothers Group plc Half Year Results 2026 4
Slide 5: A clear strategy: Simplify, Optimise, Grow
A clear strategy: Simplify, Optimise, Grow Core business strength Strong capital Accelerating cost savings • Performance reflects resilient trading • 14.3% CET1 - well placed to absorb a range of • Now expect to deliver c.£25 million of annualised • Simplified group potential outcomes from FCA’s pro
Slide 6: Financial update
Financial update Fiona McCarthy Group Chief Finance Officer Close Brothers Group plc Half Year Results 2026 6
Slide 7: Overview of financial performance
Overview of financial performance Adjusted1 operating profit (“AOP”) Strong capital, funding Lending divisions AOP of of £65.2 million; RoTE2 of 6.3% and liquidity, with CET1 capital ratio £88.0 million with Group (central at 14.3% functions) adjusted operating loss (“AOL”) of £22.8 million Loan boo
Slide 8: Income statement: resilient trading performance
Income statement: resilient trading performance H1 26 H1 25 Change Continuing operations £ million £ million % Continuing operations Adjusted operating income 326.6 348.6 (6) Adjusted operating expenses (221.9) (221.0) - Adjusted operating income reduction driven by a lower Adjusted impairment losse
Slide 9: Operating loss reflects adjusting items
Operating loss reflects adjusting items Adjusting items Material adjusting items (£ million) £135.0 million motor finance provision in H1 26 £(130.7) million of adjusting items • Total provision now at £300 million • The ultimate cost to the group could be materially higher or lower and remains subj
Slide 10: Our businesses
Our businesses Commercial Retail Property Adjusted operating income £151.2m (5)% £118.4m (8)% £61.6m (10)% Loan book (year-on-year) £4.6bn (3)% £2.9bn (1)% £1.8bn (9)% Net interest margin 6.5% (HY 25: 6.6%) 8.3% (HY 25: 8.7%) 6.8% (HY 25: 7.1%) Change in adjusted operating expenses 1% 4% (4)% Bad de
Slide 11: Robust net interest margin while income reflects repositioned business
Robust net interest margin while income reflects repositioned business Income (£m) Income drivers • 6% reduction in income driven by a lower average loan book, reflecting current market conditions, (10) and the repositioning of our business including the wind-down of Novitas and the reduction of (7)
Slide 12: Loan book performance
Loan book performance Loan book movement by business1,2,3,4 Loan book growth impacted by (£ million) repositioning and current market Retail repositioning Commercial Retail Property conditions • Loan book decreased 2% to £9.2 billion 58 • Underlying loan book decrease of 1%, excluding 104 (16) plann
Slide 13: Cost discipline helping to keep costs broadly flat
Cost discipline helping to keep costs broadly flat Group adjusted operating expenses (£ million) Adjusted operating expenses broadly flat 4 4 (11) We now expect to deliver: 4 • c.£25 million (previously c.£20 million) of annualised savings in the 2026 financial year • a total of c.£60 million of ann
Slide 14: Solid credit performance
Solid credit performance Long-term average bad debt ratio1 Bad debt ratio at 0.8% Impairment charges decreased to £39.5 million from prior year reflecting: 2.6% 2.4% 2.2% • The implementation of an updated IFRS 9 model 2.3% for the Motor Finance book 2.1% • Increase in individually assessed provisio
Slide 15: Strong balance sheet
Strong balance sheet Total funding Prudent approach Conservative funding strategy £11.7 billion Equity Unsecured funding 14% 9% Average maturity of funding allocated to loan book at 18 £11.7bn Secured funding 9% Reduction in total funding and treasury assets reflects Total funding Retail deposits 54
Slide 16: Capital able to absorb a range of outcomes from FCA motor finance commissions
Capital able to absorb a range of outcomes from FCA motor finance commissions 31 Jan 2026 31 Jul 2025 CET1 capital ratio increased even after taking additional motor finance commissions provision CET1 capital ratio1 14.3% 13.8% Tier 1 capital ratio1 16.5% 15.8% Total capital ratio1 18.8% 17.8% Lower
Slide 17: Conclusion
Conclusion Mike Morgan Group Chief Executive Officer Close Brothers Group plc Half Year Results 2026 17
Slide 18: Conclusion
Conclusion Our core business remains strong Strong capital position, even after the impact of motor finance commissions provision Accelerating cost savings in FY 2026 and FY 2027 03 Conclusion Clear strategy in Simplify, Optimise, Grow, with a clear path to deliver double-digit returns by FY 2028, r
Slide 19: Q&A
Q&A