ADVFN Logo ADVFN

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

CBG Close Brothers Group Plc

330.80
25.80 (8.46%)
27 Mar 2025 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Close Brothers Group Plc LSE:CBG London Ordinary Share GB0007668071 ORD 25P
  Price Change % Change Share Price Shares Traded Last Trade
  25.80 8.46% 330.80 1,685,348 16:35:29
Bid Price Offer Price High Price Low Price Open Price
327.00 330.80 333.40 302.40 302.40
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Asset - Backed Securities 1.03B 100.4M - - 458.99M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:37:19 O 302 331.00 GBX

Close Brothers (CBG) Latest News (1)

Close Brothers (CBG) Discussions and Chat

Close Brothers Forums and Chat

Date Time Title Posts
27/3/202522:07CBG...A Banking Stock..........worth its weight in gold!!!!!!!2,326
03/9/202418:49Is Close Brother Up for a big rise18
15/3/202215:06Close Brothers151
11/4/200810:06A 'BLUE' BANK319
07/3/200809:41Winterflood Securities = Hidden Jewel224

Add a New Thread

Close Brothers (CBG) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2025-03-27 16:42:53331.00302999.62O
2025-03-27 16:42:13331.2042139.10O
2025-03-27 16:37:19330.802,4548,117.83AT
2025-03-27 16:37:07330.802,0556,797.94O
2025-03-27 16:35:29330.80155,506514,413.85UT

Close Brothers (CBG) Top Chat Posts

Top Posts
Posted at 27/3/2025 08:20 by Close Brothers Daily Update
Close Brothers Group Plc is listed in the Asset - Backed Securities sector of the London Stock Exchange with ticker CBG. The last closing price for Close Brothers was 305p.
Close Brothers currently has 150,487,543 shares in issue. The market capitalisation of Close Brothers is -.
This morning CBG shares opened at 302.40p
Posted at 19/3/2025 10:11 by apple53
So even after the jump in STB's share price, it is cheaper on a PE than CBG using analyst estimates. I have a large holding in STB still. The glitch for me (other than no disclosure on motor finance until the results) has been that analyst estimates (marketscreener rather than stocko which I can't see) had not come down for 25 and 26, while I thought they should have put a motor finance hit into them. Well STB results were very good on the all important operating basis (check thread) with impairments continuing to drag down eps. If you listen to one of the two presentations you get very good explanations and there is a high probability of a sharp fall in impairments in 25 allowing the new higher operating profit base to shine through, so earnings power over the next couple of years is 250-300p (share price 575p). Ironically this means that analyst forecasts, at least for 25, might be about right. [NB despite the good results one analyst has already tweaked down 25, but I think it's more of a rounding error, or a catch up since the stock is so small they rarely revise it].

The motor finance provision, based on 37 scenarios weighted for probability, is extremely modest. They accept two way risk, but given they are close to the 12% stated T1 minimum, they must believe that additional downside is very limited (note they grew the div, and still plan to growth the balance sheet materially).

If anyone here has done some work on the look-through eps forecasts for when vehicle finance is done and dusted (based on the H2 24 numbers which I think some of you were disappointed by) it would be interesting to see which stock has greater 2-3 year upside. I guess you can look at the total motor finance bill (expenses plus redress) as a hit to equity rather than earnings.
Posted at 25/2/2025 06:21 by stoopid
Another short above 0.5% yesterday apparently? Yet price still rose at end of day to close nearly even.

Interesting times ahead with CBG. Wonder when the CBAM money comes through if it will boost the share price significantly?

With projected "profits" of 100m to 150m this year that means CBG are currently sat on a PE of approx 4. Too cheap by half? Will the supreme court throw a spenner in the works or resolve this issue favourably for CBG and other lenders?

Not long to wait now...
Posted at 15/2/2025 17:58 by popit
apple

“As I have written above, I don't think it's a binary outcome from the supreme court. Yes they could reinstate the initial court outcome (CBG, STB etc will fly)”

I think STB may actually offer much better value than CBG

They are on a forecast PE of about 3 and they are still paying a dividend of over 7%

OSB are also very good value on a forecast PE of 5 and a dividend of over 7% and without the court case risk

OSB have not really kept up with the share price rise of the other UK banks and so it may not be long before a bidder comes calling
Posted at 13/2/2025 22:10 by jaknife
Blackhorse23,

"Group is facing significant cost and car financing payout , hence no dividends next few years, if so share price will decline gradually… investors will not be interested"

You're assuming that CBG don't win the appeal against Hopcraft:



If CBG win then it's stupidly cheap.

JakNife
Posted at 12/2/2025 11:07 by smithie6
chris9119

thanks for replying

We agree to disagree.

We both know that in reality if big shareholders in a company are not happy with the performance or the share price then they can tell the bod to look for a buyer of the company or to wind it up or to do buybacks to raise the shareprice

( has happened at TST, LFI, TRX & many many listed shares

At LFI the shares were 45p. The company is closing up & paying out ~71p/share.

At banks the controlling shareholders will allow the share price to sit below the TNAV if they are happy with the growth & annual gain they are making as shareholders. If they think the growth will only flatline in future years rest assured that if the TNAV of a bank is double the share price that they will tell the bod to sell the assets & pay out the cash, or to sell the company.

Shareholders own companies, in the end the shareholders tell bods what to do.
Posted at 12/2/2025 09:44 by smithie6
..yes, the nett interest margin seems to be quite stable, at ~7%

a very good % margin

Just need to let the wheels turn....let the one off costs fade away....& the underlying profit will again pop out as PAT & good eps & divi.
And if doesn't then the major shareholders will imo just call a vote to wind up the company & pay out the TNAV of ~£9-10/share.

How would the company achieve that ?
Just stop giving out new loans, collect the returning money as existing loans are paid back & sell any loan books for any long term loans. Then pay out the cash to shareholders. But only if the eps after this compensation topic is history (which it will be at some time) doesn't get the share price back, at least close to the TNAV.

(or another is of course to use the excess of £5-6/share to do share buybacks

one can imahine that if start use/spend £5-6/share to do buybacks ...on a share costing £3.6
...the share price would rocket upwards....if just 10% were willing to sell, then you are trying to spend £5-6/share & only £0.36 is available to be bought !!)
Posted at 12/2/2025 09:03 by smithie6
chris9119

The massive discount to TNAV doesn't attract you to buy any shares ?

With the sale of CBAM & the payment of ~£165m compensation (if that ends up being the final amount) the TNAV stays roughly unchanged....
at ~£9-10/share.

versus a share price of ~£3.6.

If the share price does not move up then the major shareholders will call a vote to wind up the co. & pay out the TNAV to shareholders.

~£9/share.

;-)
Posted at 11/2/2025 08:14 by smithie6
TNAV is ~£12 imo (£1800 million !) if one includes the expected £200m for selling CB Asset Mngmt. (£1600m (= ~£1860m shareholder assets minus ~£260m intangibles) + ~£200m from sale of CBAM= ~£1800. While noting these numbers are top level rough numbers. So, imo £12 +/- £1.

Numbers from the statement if group assets & liabilities & resulting shareholder assets (= NAV, not TNAV ) from ~page 200 from the last AR)

(sadly the accounts suffer very badly from WOKE'ism, 200 pages of data/information/blurb before the statement of assets. That is madness imo. WOKE in society & regulations needs a severe cut back. Europe needs to compete Asia not sink ourselves in regulations that 90% of people dont support)

£3.6-3.7/share is just crazy cheap imo

At 2/3 of the TNAV leaving 1/3 (~£500m of cash !!) to hopefully (more than) cover any one off costs such as legal costs & any compensation liability
...you get

£8.04 share price !

(& then in 1-3 yrs time, with the current problems all being past history, the validation would hopefully be higher than that since based on earnings & not as a discounted price wrt the TNAV

From early in April the problem of high costs because of false claims from Claims Management Companies will be solved, over, finished. Over time the other current problems (such as legal costs for Supreme Court case, the unknown of any compensation liability etc) will imo also be history.

One can buy now in advance or wait 1 year until a lot of these problems are gone/known amounts but imo you would have to pay a much higher share price).
Posted at 08/2/2025 21:58 by smithie6
hi si34cknote
thanks for those comments

...I'm sinking a bit perhaps in an info overload with these 2 companies, what with various RNSs in recent weeks & also news from legal battles & press articles & the boss of the Fin. Ombudsman news &.....!!

Would it fair to say that VANQ shares win vs CBG shares for % discount to TNAV while CNG wins for PAT per £ of share.
Would it be fair to say VANQ has less risk/exposure than VANQ, per £ of share price, to the car finance compensation risk & the risk of unwanted/expensive court decision ?

CBG has an advantage wrt Vanquis imo wrt having more different business ventures (although it says it has agreed to sell 1, CBAM).
Posted at 08/11/2024 22:51 by pj84
Well if you are looking for a more positive post.

I will start by saying the share price is likely to remain depressed until there is anymore clarity on the eventual outcome from the Hopcroft case.

Having said that the latest adjusted eps was 76p share and that would normally support an undemanding of market cap of about £8 (a PE of just over 10) which is roughly where the share price was before the main slide started with the motor finance review. Not too long before that it was even higher at around £10/share.

The market cap with a share price of £8 was around £1.2 bn and it has dropped £900m since then to a current market cap of just over £300m.

RBC's previous worst case scenario (not their base case scenario) was £420m and if the Hopcroft judgement widens the exposure their new worst case scenario is £640m.



So arguably a drop of £900m already in the market cap more than reflects that worst case scenario.

CBG has suspended the dividend to bolster it's capital and at the moment it is fairly certain that will continue next year and until this whole situation is both clarified and dealt with.

Whatever the outcome it is unlikely it will all be dealt with in a single one off write off and is likely to remain uncertain for some time which should allow CBG more time to continue to bolster its capital position.

If, however, there is a clear need to write of £640m next year and that a draws a line under the issue then CBG might need to raise capital but once it is dealt with what would the new share price be once the adjusted eps is again around 76p without any further write offs?

The above is based on the current worse case scenario but whilst it looks unlikely what would the situation look like if any of the appeals are successful.

As I say the share price is likely to remain depressed for the time being but I don't subscribe to the view that this is curtains for CBG.
Close Brothers share price data is direct from the London Stock Exchange

Close Brothers Frequently Asked Questions (FAQ)

What is the current Close Brothers share price?
The current share price of Close Brothers is 330.80p
How many Close Brothers shares are in issue?
Close Brothers has 150,487,543 shares in issue
What is the market cap of Close Brothers?
The market capitalisation of Close Brothers is GBP 458.99M
What is the 1 year trading range for Close Brothers share price?
Close Brothers has traded in the range of 180.30p to 564.00p during the past year
What is the reporting currency for Close Brothers?
Close Brothers reports financial results in GBP
What is the latest annual turnover for Close Brothers?
The latest annual turnover of Close Brothers is GBP 1.03B
What is the latest annual profit for Close Brothers?
The latest annual profit of Close Brothers is GBP 100.4M
What is the registered address of Close Brothers?
The registered address for Close Brothers is 10 CROWN PLACE, LONDON, EC2A 4FT
What is the Close Brothers website address?
The website address for Close Brothers is www.closebrothers.co.uk
Which industry sector does Close Brothers operate in?
Close Brothers operates in the NONDEPOSITORY CREDIT INSTN sector

Your Recent History

Delayed Upgrade Clock