Close Brothers shares drop as motor finance arm deals with two FCA reviews Banking Shares in merchant banking group Close Brothers fell as much as 6.6 per cent on Wednesday morning as its motor finance business faces compensation costs tied to two market-wide reviews from the Financial Conduct Authority (FCA).
Close Brothers plans to bolster finances by £400m for FCA motor finance probe Banking Close Brothers has outlined measures that could boost its capital position by around £400m as the merchant banking group faces potential compensation costs tied to a Financial Conduct Authority (FCA) review into historic unfair car loans.
Lloyds could face £3.5bn hit from FCA motor finance probe, analysts warn Banking A wide-ranging review of historic motor finance commission arrangements has rocked the UK’s banking sector.
Close Brothers faces uncertain future as FCA motor finance probe sparks crisis February 15, 2024 Close Brothers shares collapsed on Thursday after it cancelled its dividend for the current financial year and announced that 2025 payouts would be placed under review amid a City watchdog probe into motor finance - a major part of its business model.
Close Brothers shares collapse after FCA auto finance probe forces it to scrap dividend February 15, 2024 Shares in Close Brothers have collapsed after it scrapped dividend payouts for the current financial year and put 2025 rewards under review, with the group bracing for potential compensation costs from a motor finance review by the City watchdog. The news sent the group’s shares down 28 per cent in London on Thursday morning. Close [...]
Auto finance industry could face £16bn in compensation payouts from FCA probe January 25, 2024 UK auto lenders could be hit by up to £16bn in compensation payments after the City watchdog confirmed its probe in historic commission arrangements would look at cases going back to 2007.
Lloyds and Close Brothers shares drop as FCA motor finance review looms January 17, 2024 Shares in Lloyds Bank and Close Brothers extended losses on Wednesday as investors digest a surprise increase in inflation and analysts estimate the two firms could be rocked by a City watchdog review into motor finance.
UK banks could face major losses over FCA motor finance review January 15, 2024 UK banks could be on the hook for billions in compensation, according to analysts, after the City watchdog announced a review into unfair costs on discretionary car finance commissions.
Close Brothers to increase hiring and acquisitions after hit to market-facing businesses November 16, 2023 Close Brothers has said "unfavourable market conditions" will hit its asset management and market-making divisions in the first quarter of the 2024 financial year, with the merchant banking group planning to hire more staff and make acquisitions to drive growth.
Close Brothers profit halves after Novitas write-offs but boss hails progress September 26, 2023 A strong second half of the year was not enough to stop merchant banking group Close Brothers’ profit halving compared to the year before due to provisions related to legal finance specialist Novitas. In the year to July, operating pretax profit dropped 52 per cent to £112m, down from £232.8m the year before. This mainly [...]