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The banking group reported a £60.3m pre-tax operating loss for the year to July 31, hit by further motor finance redress provisions.

Published · Sep 29, 2026, 09:20 AMUpdated · Sep 29, 2026, 01:21 PM

Close Brothers plans more than £60m in further annual cost savings after another loss

Key context

Close Brothers plans more than £60 million in further annual savings after cutting costs by around £36 million in the year to July 31. It reported a reduced but still substantial pre-tax operating loss after additional provisions for the car finance redress scheme and will not pay a final dividend for 2026.

Section: Economy & Business
Format: BRIEF
Published: Sep 29, 2026, 09:20 AM

Close Brothers said it plans to deliver more than £60 million in additional annual cost savings in 2026-27 as it expands the use of artificial intelligence, outsources and offshores work, and reduces its office network and business functions.

The banking group said it cut annual costs by around £36 million in the year to July 31, exceeding its initial £25 million target. It is planning the next stage of restructuring, including bringing support functions into one central division and accelerating its AI rollout.

Close Brothers reported a £60.3 million pre-tax operating loss, compared with a £122.4 million loss in 2024-25, after setting aside a further £164.7 million for the car finance redress scheme. Its total provisions for the scheme reached about £320 million.

The group said it would not pay a final dividend for 2026 because of continued uncertainty over legal challenges to the Financial Conduct Authority’s motor finance consumer redress scheme and its potential financial impact.

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