Close Brothers reports FY26 loss, suspends dividend on motor-finance uncertainty

Close Brothers (LON:CBRO) has reported a preliminary loss for fiscal 2026, with a £63.4 million loss attributable, compared to a £77.9 million loss in the previous year. The loss was mainly due to a large provision related to motor-finance commissions, which took the total provision to about £320 million at the year-end.

The company also suspended its dividend for FY26, citing continued uncertainty surrounding legal challenges to the Financial Conduct Authority’s motor-finance consumer redress scheme. Despite the loss, Close Brothers remains committed to resuming shareholder distributions once there is greater clarity. On an underlying basis, the loan book rose 2% year over year and 4% in the second half, with all divisions delivering growth in the final quarter.

For FY27, the bank expects underlying loan-book growth of 5%-10%, with adjusted operating expenses of about £430 million.

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