In the three months to 30 April 2025, Close Brothers’ CET1 Ratio increased from 13.4%.

This was on a pro-forma basis following the sale of Close Brothers Asset Management for £150m.

The sale of the asset management business is part of an overall business strategy to simplify the group, with management pursuing £25m of annualised savings by the end of the year.

Regulatory scrutiny of the motor finance sector has brought uncertainty to Close Brothers, with senior management highlighting it is awaiting the outcome of two supreme court cases into the area.

This has also hit the business in other ways with elevated fees and expenses, with £13.9m being paid out in the quarter.

With regard to banking activity, Close Brothers’ loan book shrink by 0.9% over the quarter to £9.7bn which means it is now 3.5% smaller on a year to date basis.

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Management has attributed this to “reduced activity” in some areas of its businesses though there were increased levels of repayments in property.

Overall, it’s anticipated that Close Brothers’ loan book will end the 2025 financial year broadly similar to where it is now.

"We are taking proactive steps to ensure that the group is well positioned to generate strong, sustainable returns once the motor finance commissions uncertainty has been resolved,” said Mike Morgan, CEO at Close Brothers.

“As outlined in March, my priorities include focusing on simplification of the group, improving operational efficiency, and driving sustainable growth.

“Alongside a stronger capital position, delivering on these priorities will create a more efficient and resilient business, one that delivers greater value for shareholders and continues to support customers, as we have through many cycles."