Close Brothers Share Discussion Threads

[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.

[pj84] 26/5/2023 09:53

Close Brothers remains a key holding, says Hargreaves
Close Brothers (CBG) may not have had an easy ride, but Hargreaves Lansdown’s Steve Clayton says the private bank remains dependable and a strong dividend payer.

The group reported 2% growth in the loan boost in the period from 1 February to 30 April this year and a stabilisation in net interest margins at 7.8%. The asset management division grew assets by £400m to £16.1bn. However, its Winterflood division, which offers the dealing of stocks and funds, saw subdued trading in the quarter.

Close Brothers, which is rated A by Citywire Elite Companies, makes up 2.2% of both Clayton’s £302 HL Select UK Growth fund and £151m HL Select UK Income Shares fund.

He said it has ‘not been an easy time of late’ as Novitas was a ‘bad acquisition’ and Close Brothers has ‘learned expensive lessons along the way’.

‘[The latest] update is the first in a while not to bring new bad news from Novitas and the market may well be relieved,’ he said. ‘The core banking operations are in rude health and Close Brothers’ balance sheet has long been the envy of many other bankers.’

While Winterflood is still ‘under a cloud’, Clayton said it ‘remains a fundamentally profitable business’.

‘Hopefully, the group has now put some of its problems behind it, which could allow the underlying progress in the core business to show through more clearly in the months ahead.’

The shares slumped 2.4%, or 22.5p, to 918.5p yesterday.

3 of 5

[suetballs] 24/5/2023 07:30

Steady as she goes trading update.
No concerns about the balance sheet.
Suet

[alex1621] 14/5/2023 17:08

Article claims short interest is at 6%. Shorttracker UK reports 0.79%? Either the journalist got his research wrong or he has access to statistics under the reporting radar? Short sellers provide journalists with scoops ... quid pro quo? I'd expect selling pressure this forthcoming week ... that's usually the pattern of events in this murky world.

[pj84] 14/5/2023 16:43

At the half year the company were keen to emphasise the business was coping well with the business cycle excluding the Novitas provisions and made a modest increase in the dividend based on the underlying income and if that confidence is maintained at the year end results then potentially the dividend yield will be 7.5%.

The qtly trading update is due in just over a week and it will be interesting to see what that brings. Unless their is anything to suggest a cut in the final dividend hopefully the worst of the share price weakness has already been priced in.

[suetballs] 14/5/2023 13:51

And the Daily Mail nicely pours petrol on the fire. That’s the media for you.
What research have they done?
Suet

[pugugly] 14/5/2023 13:39

Hedge funds betting on major drop in price of Close Brothers amid wider fears about global banking
By LUKE BARR, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:50 BST, 13 May 2023 | UPDATED: 21:50 BST, 13 May 2023

Hedge funds are betting on a major drop in the price of Close Brothers amid wider fears about global banking.
The British merchant banker has been hit by a flurry of short-selling since a 'challenging' set of results in March, just days after the collapse of Silicon Valley Bank.
Short positions make up just over 6 per cent of stock in Close Brothers, or almost £90 million, S&P Market Intelligence says.
1
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Fear: Close Brothers has been hit by a flurry of short-selling since a 'challenging' set of results
This is far greater than at any other major UK bank, including Barclays, Lloyds and NatWest, which each have short positions against them of less than one per cent.
Close Brothers has 4,000 employees, mostly in the UK and Ireland.

[mister md] 14/3/2023 11:34

Results not great, but regarding dividends they say:

'We are pleased to declare an increased interim dividend of 22.5p per share (H1 2022: 22.0p per share), reflecting our underlying performance and the Board's confidence in the group's outlook. We remain committed to the group's dividend policy, which aims to provide sustainable dividend growth year-on-year, while maintaining a prudent level of dividend cover.'

[suetballs] 10/3/2023 15:46

Yes - I think something could be afoot here.
Suet

[mister md] 10/3/2023 15:28

Seems to be holding on to yesterdays gains fairly well ...

[mister md] 09/3/2023 14:07

Only invested here last month @ 1005p for the dividends ... any additional bonuses would be more than welcome

[drw1] 09/3/2023 14:01

Worth nearer £20 a share in a bid situation.

[mister md] 09/3/2023 13:35

Thought it was just a case of catchup with recent increases at Banks/Insurers, but a 10%+ daily gain is interesting .....