Close Brothers Halves Losses as Restructuring Gains Momentum

The firm’s adjusted operating profit reached £120.3 million, though this figure represents a 17 per cent decline compared to the prior year. Amidst a broader effort to simplify operations, the group’s cost/income ratio edged up to 67 per cent from 65 per cent, while the bad debt ratio remained stable at 1 per cent. To bolster its capital position against potential regulatory payouts, the bank has divested segments like the Winterflood brokerage arm.

CEO Mike Morgan signaled that the group is ahead of its internal targets, securing £36 million in annualized cost savings against an initial projection of £25 million. Despite this efficiency, the company remains burdened by the Financial Conduct Authority’s ongoing investigation into undisclosed commissions on car loans. Provisions for a consumer redress scheme now total approximately £320 million, following a £165 million addition during the last fiscal year. While share prices have dipped 17 per cent since the start of 2026, leadership maintains a target of achieving double-digit returns by 2028 as the bank shifts its focus exclusively toward specialist lending.