Close Brothers Share Discussion Threads

[its the oxman] 13/12/2023 09:29

A lot of stocks and financials have bounced but not cbg. Opportunity hopefully.

[stoopid] 23/11/2023 13:53

It appears to be struggling to break back over the 800 level.....

[elsa7878] 16/11/2023 13:15

Everytime I look at this and watch the company presentations, my eyes are drawn by the hideous ring on the CEO's finger and I can't invest.....

[cirlbunting1] 16/11/2023 11:56

Just bought in. 1st tranche

[jubberjim] 31/10/2023 13:47

Back on dry land needed liquidity so sold just now

Good luck those remaining

[jubberjim] 25/10/2023 11:55

Dipped my toes in the water this morning

Dividend too attractive too ignore

[stoopid] 19/10/2023 08:54

SP hasn't been this low since 2010....I know being ex divi today hasn't helped....

[stoopid] 14/10/2023 22:08

Questor write up hasn't helped much.... People worrying that the recession hasn't properly hit yet. Lagging by 12 months behind the interest rate rises..... so, maybe more a lot pain to come for CBG on their loan book.....

[pj84] 04/10/2023 10:45

Against the backdrop of the latest downturn generally about US rates staying higher for longer (hope we are getting close to the end of this latest interest rate cycle) questor has written a positive update on Close brothers.



It notes the recent bad news on the latest Novitas provisions and increase in bad debts but these are now in the past and the following is questor's forward looking view: -

"More encouragingly, the loan book grew by 5pc, the net interest margin barely flinched at a very healthy 7.7 percentage points and the asset management arm generated business inflows, in stark contrast to the outflows suffered by many rivals.

In addition, the balance sheet is sound, since a 13.3pc “common equity tier 1” (CET1) ratio easily exceeds the 9.5pc required by the regulator.

Nor should investors forget that Close Brothers’ banking arm tends to come into its own during tougher times, as it tends to lend contra-cyclically, when mainstream lenders are running scared.

This helps the bank to make that fat net interest margin. Best of all, the share price slide means a lot of bad news may already be factored into the valuation.

A £1.3bn market value compares with shareholders’ funds, or net assets, of £1.64bn. Strip out £264m of intangible assets and the tangible book value is £1.38bn, so the shares trade around book value.

That, and a forecast dividend yield of some 8.3pc, should help to provide some protection as shareholders patiently await a recovery in earnings. Hold."

[cwa1] 03/10/2023 15:15

Thanks for that, was wondering why the share price wasn't getting mullered today as per ;-)

[maxk] 03/10/2023 14:41

After a spell in the doldrums and a dividend rise these banking shares yield 8pc

Questor share tip: a lot of the bad news related to this financial stock is already priced in

By
Russ Mould
3 October 2023 • 6:00am


A £1.3bn market value compares with shareholders’ funds, or net assets, of £1.64bn. Strip out £264m of intangible assets and the tangible book value is £1.38bn, so the shares trade around book value.

That, and a forecast dividend yield of some 8.3pc, should help to provide some protection as shareholders patiently await a recovery in earnings. Hold.

[its the oxman] 02/10/2023 14:59

Thought this might be heading back over 900p. But here we are back to 850p today.

[pj84] 27/9/2023 16:41

Hargreaves: Close Bros rewards investor patience

Close Brothers (CBG) is not firing on all cylinders despite better-than-expected results, but its dividend is still one of the highest quality in its sector, says Hargreaves Lansdown manager Steve Clayton.

Clayton holds the Citywire Elite Companies A-rated private bank in his HL Select UK Income Shares fund where it makes up 1.8% of the £143m of the portfolio.

The company reported that profits declined 20% for the year as positive loan growth in the banking business was offset by rising operating costs and an increase in bad debt provision.

Clayton said the results were ‘pretty solid compared to market expectations’ and although full-year 2024 has started well ‘the group is still not firing on all cylinders’.

It did, however, post a ‘modest 2% increase in the dividend to 67.5p per share’ and hinted at enhanced shareholder returns in future, which Clayton said reflected ‘its ability to deliver growth through deploying surplus capital into new opportunities’.

‘We consider Close Brothers’ dividend to be one of the highest quality payouts in the financials sector,’ said Clayton. ‘The group has ample reserves, earns attractive returns and generates capital organically on a consistent basis. To see those qualities attached to a yield of over 8% is pretty uncommon, and whilst the group may not yet be firing on all cylinders, investors are being paid handsomely to wait for it to do so.’

Shares in Close Brothers slipped 1.9%, or 16p, to 836.5p on Tuesday.

[stoopid] 27/9/2023 15:58

I reckon so, well capitalised and the results were really quite good if you strip out Novitas provisions....

[brucie5] 27/9/2023 13:24

Yes, it is looking good from here. Overlooked share, perhaps?

[stoopid] 27/9/2023 12:32

Bought in yesterday, 832. Thought it was a great price. 10 year lows and nearly 8% Divi. Results were excellent apart from the £100m ish Novitas hit....

[the wook] 26/9/2023 11:49

hxxps://www.closebrothers.com/system/files/press/CBG%20FY23%20Results%20RNS%2026.09.23.pdf

[stoopid] 25/9/2023 09:47

Want to buy in for a longer term hold. 860 seems like a good buy in but still waiting...

[its the oxman] 20/9/2023 12:21

Nope , but at least the shares are up. Still massively cheap here. Hopefully someone will running the slide rule over cbg itself.

[faz] 20/9/2023 10:44

Any views abou the acquisition?

[brucie5] 24/8/2023 12:07

Call that >8%.



And held in both the Roland Head and John Kingham quality dividend folios, I believe.
Who am I to argue?

[its the oxman] 26/6/2023 18:49

With a yield over 7% and the worst behind it .......hopefully. Surely better times are ahead.