Close Brothers Share Discussion Threads

[stoopid] 11/1/2024 17:01

CBG are only just recovering from the provisions they had ro make for Novitas (£170m ish?)CBG will need to look into how much they need to put aside for this debacle. Could cost them a few hundred million, depends on how far back people are allowed to go and how liable they are...

[stoopid] 11/1/2024 16:57

Yep, Martin Lewis reckons it could be on a scale similar to the PPI claims. This is going to drag on for years and the FCA haven't even finished their investigation yet. Some are saying it could be on the scale of PPI, as much as £40 Billion.

[topvest] 11/1/2024 16:20

Looks like the FCA review will likely lead to some sort of liability now:

Contingent liabilities
Motor Finance commission arrangements
The Group has received a number of complaints, some of which are with the Financial Ombudsman Service, and is subject to a number of claims through the courts regarding historic commission arrangements with intermediaries on its Motor Finance
products. This follows the FCA’s Motor Market Review in 2019. Depending on the outcome of the court’s rulings and/or regulatory findings on the matter, these complaints and claims may give rise to a potential future obligation to compensate customers. It is not currently possible to estimate the financial impact, if any, or scope of these or any future related claims.

This is the reason for today's weakness. I had just tripled my position - very unlucky.

[cwa1] 11/1/2024 15:21

Yup, looks an absolute dogs with fleas. I'll have a few at 715p, thank you very much :-))

[suetballs] 11/1/2024 14:23

Look at the chart - absolute dog.

Suet

[mortimer7] 11/1/2024 14:17

Maybe the FCA investigation in to Motor Finance Commission is a factor in todays decline - FCA issued a statement this morning which isn't good news for lenders/brokers.

[stoopid] 11/1/2024 13:53

Nope, but with the current views of stagnation and possible debt defaults comming then banking shares will suffer.CBG are also suffering because of its ill fated purchase of Novitas which it is still making provisions for, another 100m/120m in the last financial year.Also their wealth management arm Winterflood has been finding it hard going.They were confident enough to raise the dividend so hopefully profitability will be better and share price should recover this year barring any wars or catastrophes...Current dividend equivalent to nearly 9%

[faz] 11/1/2024 12:56

this is painful. Any news anywhere?

[stoopid] 18/12/2023 11:42

Dunno, but I'm in at 784 and think that's a great price.Their current woes with the wind down and losses (another 100m in liabilities) of Novitas and their ill fated investment arm are to blame. Hopefully will be back on track and closer to 1000 soon.....

[damanko] 14/12/2023 20:25

Ditto, is CBG really only worth a third of its value some years ago..?

[faz] 14/12/2023 08:54

Here is comes; I expect this to do much better in 2024 and have loaded up accordingly over the last two months

[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.