Full Year 2025 Close Brothers Group PLC Earnings Call Transcript
Key Points
- Close Brothers Group PLC (CBGPF) significantly strengthened its capital position, achieving a CET1 capital ratio of 13.8% or 14.3% following the sale of Winterflood.
- The company delivered 25 million of annualized savings by the end of FY25, ahead of initial guidance, and plans to deliver an additional 60 million in savings over the next three years.
- Close Brothers Group PLC (CBGPF) has simplified its portfolio by selling non-core businesses and repositioning its premium finance business towards more attractive commercial lines.
- The company maintained a strong net interest margin of 7.2% and a resilient credit quality with a bad debt ratio of 1%.
- Close Brothers Group PLC (CBGPF) is well-positioned to capture growth opportunities in underserved SME lending markets in the UK and Ireland.
- The company reported an operating loss before tax of $122 million, driven by 267 million of adjusting items, including a 165 million provision related to motor finance commissions.
- Close Brothers Group PLC (CBGPF) incurred a 30 million asset impairment charge due to exiting its loss-making vehicle hire business.
- The loan book reduced by 4% due to loan book moderation measures and lower activity in some markets.
- The company is not paying a final dividend for the 2025 financial year due to uncertainty around motor finance commissions.
- Close Brothers Group PLC (CBGPF) faces ongoing challenges with cost pressures, including legal and professional fees related to motor finance commissions.
This presentation will commence shortly.
Lorenzo, good morning and welcome to the presentation of Close Brothers 2025 preliminary results. I will begin with an overview of the year. After that, I will hand over to Fiona McCarthy, our group CFO, who will walk you through our financial performance, and then I will return to update you on our strategic priorities and wrap up the presentation.
We will be happy to take your questions afterwards, both via the telephone conference line and over the webcast.
You can submit your questions either during or after the presentation.
This year has shown that change is possible and that we can move at pace. We have strengthened our capital position, reshaped the portfolio and addressed legacy issues.
Our performance demonstrates the resilience of our business model and the impact of these actions. We are also encouraged by the growth opportunities across our chosen markets, which I will touch on shortly.
We
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