Motor finance: Lloyds, Close Brothers and Santander brace for ‘shockwaves’ March 31, 2025 Judgement day nears for some of the UK’s biggest lenders as the motor finance scandal heads to the country’s highest court this week. The Supreme Court will decide whether to uphold the Court of Appeal’s October ruling that it was unlawful for banks to pay a commission to a car dealer without the customer’s informed [...]
Billions on the line: Legal showdown over motor finance set to decide lenders’ fate March 28, 2025 Lenders sit in shark-filled waters with their fate in the hands of five Lord Justices as parties prepare for a showdown over motor finance on Tuesday
Analysts downgrade Close Brothers’ ‘beaten up’ shares March 21, 2025 Analysts have said Close Brothers shares are worth 340p – a 20p downgrade from their previous price target. The lender suffered a profit hit in its half-year results, plunging to a £104m loss. A £165m provision for motor finance payouts drove the bank’s woes, with shares falling as much as 24 per cent on Tuesday. [...]
Motor finance: Lloyds and Close Brothers shareholders await landmark hearing March 19, 2025 The eyes of shareholders at Britain’s biggest lenders will be on April’s landmark motor finance hearing, as the scandal heads to the Supreme Court. The hearing, scheduled for April 1-3, will allow car loan providers to challenge the October 2024 Court of Appeal ruling that it was unlawful for banks to pay a commission to [...]
Analysts put Close Brothers shares ‘under review’ as stock plummets March 18, 2025 Peel Hunt analysts placed Close Brothers shares ‘under review’ after the banking group suffered a £104m loss in the first half of its 2025 financial year. The lender said losses were driven by the £165m reserved for potential motor finance payouts, along with costs of complaint handling and legal expenses. Close Brothers’ stock sank as [...]
Close Brothers shares plunge as motor finance costs mount March 18, 2025 Banking group Close Brothers plunged to a £104m loss in the first half of 2025 after the firm set aside provisions for the motor finance scandal. The lender recorded a pre-tax loss in the first half of its 2025 financial year, compared to a profit of £88.1m in the same period of 2024 due to [...]
Close Brothers completes sale of asset management arm to Oaktree March 3, 2025 Banking group Close Brothers has completed the sale of Close Brothers Asset Management (CBAM) to global investment management firm Oaktree Capital Management. The transaction, finalised on 28 February 2025, is expected to bolster the bank’s common equity tier 1 (CET1) capital ratio by approximately 120 basis points, from 12.1 per cent to 13.3 per cent. [...]
Treasury refused permission to intervene in motor finance battle February 17, 2025 The Supreme Court has rejected the Treasury's application to intervene in the upcoming hearing over the motor finance scandal
Barclays puts aside £90m for motor finance scandal February 13, 2025 Barclays announced in its annual results it had set aside £90m to cover potential motor finance payouts, amidst ongoing disputes over the misconduct row. This follows the landmark Court of Appeal’s October 2024 judgment, ruling in favour of three consumers and determining that lenders were liable for paying undisclosed commission to car dealers who acted [...]
Motor finance scandal: Close Brothers on the hook for £165m February 12, 2025 Close Brothers will be forced to set aside £165m in its half-year results following recent developments in the motor finance scandal. The calculation is based on currently available information but the merchant bank said ultimate costs could be “materially higher or lower” given uncertainty surrounding the FCA’s ongoing review of motor commissions. Close Brothers said [...]