Close Brothers Group (CBG) Corporate presentation summary

Strategic transformation and focus

• Transitioned from a diversified merchant bank to a focused specialist lender in the UK and Ireland, exiting non-core businesses and optimizing the cost base to drive growth in chosen markets.

• Operating model transformation targets £60m annualized cost savings by FY27, reducing FTE from 2,600 to 2,000 by FY28, with significant investment in AI and automation to enhance efficiency and scalability.

• Strategy centers on three divisions: Commercial, Retail, and Property, each with clear growth plans and market-leading positions.

• Double-digit RoTE targeted by FY28, supported by simplification, cost optimization, and sustainable growth initiatives.

Commercial division performance and outlook

• Commercial supports over 28,000 SMEs, with a £4.6bn loan book and strong market shares in asset finance (4.2%) and invoice finance (6.3%).

• Loan book has grown at 11% CAGR since FY09, with consistent low bad debt and margins stabilizing around 6%.

• Differentiation through service, expertise, and a dual-channel strategy, with 90% of lending secured and high customer satisfaction scores.

• Growth engines include expanding in specialist segments, new products, and partnerships, targeting 5-10% p.a. loan book growth.

Retail division performance and strategy

• Retail comprises Motor Finance, Premium Finance, and Savings, with a £2.9bn loan book and strong intermediary relationships.

• Motor Finance holds a 3% UK market share and 11.5% in Ireland, focusing on technology-driven origination and operational efficiency.

• Premium Finance is repositioning toward commercial lines, reducing personal lines exposure and improving profitability.

• Savings franchise is growing, with 20% YoY growth in retail deposits and 86% of customers now digital.