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Close Brothers Group PLC shares jumped on Wednesday as it said the costs from the UK Financial Conduct Authority’s final motor finance verdict can be ‘comfortably absorbed’. Shares in Close Brothers surged 18% to 457.94 pence on Wednesday morning in London. The London-based merchant bank said it has put the cost of the final scheme at around £320 million, which it said it ‘broadly similar’ to its existing IAS 37 provision of £294 million. The firm said the cost can be ‘comfortably absorbed’ by its existing capital resources, which leave it ‘well positioned’ to continue ‘delivering its strategy’. ‘At this stage, no provision changes have been recognised. The group’s existing IAS 37 provision remains under review,’ Close Brothers said. The company added that it will closely monitor any further legal, regulatory and industry developments and is considering its next steps. It said the sum would trim its common equity tier 1 ratio by around 25 basis points to 14.0% on a pro forma basis. This remains ahead of its medium-term target of between 12% and 13%. Last week, the regulator estimated around 12.1 million agreements will be eligible for redress, down from 14.2 million proposed at the consultation stage, after tightening eligibility criteria. The scheme is expected to see firms pay out around £7.5 billion in compensation, with total costs including administration estimated at £9.1 billion. This is lower than earlier projections of up to £11 billion. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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