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motor finance review

  • Close Brothers shares soar past target price whilst FTSE 100 banks sink

    April 3, 2025

    Shares in FTSE 250 lender Close Brothers rallied on Thursday morning whilst its banking rivals HSBC, Barclays and Standard Chartered tumbled. The lender made gains as high as ten per cent during early trading before consolidating around five percent, as the bank clawed back recent losses. Meanwhile, Standard Chartered led the FTSE 100 losses at [...]

  • 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 [...]

  • 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 [...]

  • Regulator considers redress scheme in motor finance review

    March 11, 2025

    In a statement this morning, the Financial Conduct Authority (FCA) has outlined its next steps in its motor finance review – including an industry-wide redress scheme if the Supreme Court upholds last year’s Court of Appeal ruling. The UK’s top court is expected to hear the appeal in early April as part of the growing [...]

  • Motor finance complaints hit record levels

    March 4, 2025

    The UK financial ombudsman has received a record number of complaints about motor finance loans in the most recent quarter, according to new data. On Tuesday, the Financial Ombudsman Service (FOS) said that complaints about car loan cases had surpassed credit cards as the subject with the most unresolved complaints in the financial sector. Some [...]

  • 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. [...]

  • Motor finance: Bank of Ireland sets aside £143m provision

    February 24, 2025

    Bank of Ireland joined the UK’s biggest lenders in setting aside a lump sump for potential motor finance payouts as it posted its annual results. The bank recorded a pre-tax profit of €1.86bn (£1.5bn) for 2024, which was four per cent down on the €1.94bn (£1.6bn) reported in 2023. The bank set aside €172m (£143m) [...]

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