Close Brothers stock reports weaker profit after FY2026 results

Published on 10/04/2026 at 20:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Close Brothers stock was last at GBp 399 on October 2, 2026, after FY2026 adjusted operating profit fell to GBP 120.3 million. Five of eight analysts rate it Buy, with an average target of GBp 481.25.

Modernes Bankgebäude im Finanzviertel mit Passanten in Businesskleidung — Fotorealistische Straßenszene zeigt Bankgebäude im Finanzviertel, passend zu Close Brothers Group plc, ISIN GB0007668071, London, Illustration mit AI erstellt.

Close Brothers stock (ISIN GB0007668071) was last at GBp 399 on the London Stock Exchange on October 2, 2026, up 0.30 percent from the prior close. The latest company results put the turnaround under scrutiny: FT.com reported on September 29, 2026, that adjusted operating profit fell 17 percent to GBP 120.3 million for fiscal year 2026.

Profit falls as costs improve

For the year ended July 31, 2026, adjusted operating income declined 6 percent to GBP 642.9 million from GBP 681.2 million, while return on average tangible equity fell to 5.5 percent from 7.1 percent, according to Yahoo Finance on September 29, 2026.

The statutory picture was weaker than the adjusted result. Close Brothers reported a GBP 60.3 million operating loss before tax, while an additional GBP 164.7 million motor finance provision lifted the total provision to GBP 320 million for FY2026, as detailed by FT.com.

Loan growth tests the recovery

The loan book stood at GBP 9.5 billion on July 31, 2026, unchanged from the prior year, although underlying lending increased 2 percent year over year and 4 percent in the second half. Management also reported GBP 36 million of annualized savings against a GBP 25 million target, while the CET1 capital ratio reached 14.1 percent.

The recovery therefore has two distinct measures: operating discipline is improving, but earnings remain exposed to motor finance costs. Close Brothers said it would not pay a final dividend for FY2026 because of uncertainty surrounding legal challenges to the FCA consumer redress scheme, according to FT.com.

Analysts see upside to GBp 481.25

On October 3, 2026, five of eight covering analysts rated Close Brothers Buy and three rated it Hold, giving the shares a Moderate Buy consensus. MarketBeat reported an average 12-month price target of GBp 481.25, which lies 20.61 percent above the October 2 price of GBp 399.

The next shareholder checkpoint is the annual general meeting scheduled for November 19, 2026, in London, according to TradingView. That date puts the motor finance provision and the pace of loan growth on the agenda alongside the annual report.

Close Brothers stock stays below GBp 400

Close Brothers stock was last at GBp 399 on October 2, 2026 at 4:35 p.m. London time, with a market capitalization of GBP 601.3 million and a 52-week range of GBp 318.40 to GBp 556.15.