Overview
- The lender reported a £122.4m pre-tax operating loss for the year to July 31 as charges from motor finance and rental businesses weighed on results.
- It set aside a further £33m for proactive compensation to motor finance customers who repaid loans early, describing the figure as a best estimate subject to refinement.
- The £165m provision for the industry commission issue was left unchanged, with final costs dependent on the FCA’s redress scheme following the recent Supreme Court ruling.
- Close Brothers will wind down its loss-making vehicle hire arm over three to five years after recording a £30m write-down on the business.
- Chief executive Mike Morgan outlined a drive toward up to £60m in annualised cost savings over three years, said motor finance lending is resuming, and noted the results were delayed a week after PwC requested more audit time.