Close Brothers Group PLC has released a trading update and dividend announcement, addressing the Financial Conduct Authority's (FCA) review of historical motor finance commission arrangements. The company's business performance remains strong, with the Banking division delivering disciplined growth and stable credit performance, generating approximately £112 million of adjusted operating profit for the six months to 31 January 2024. Close Brothers Asset Management also reported strong annualized net inflows of 9%, and Winterflood is well-positioned for a recovery in investor confidence. The group's capital, funding, and liquidity position is robust, with strong capital ratios and liquidity levels comfortably ahead of internal risk appetite and regulatory requirements.
In response to the uncertainty surrounding the FCA's review, the Board has decided not to recognize a provision in the group's Half-Year 2024 results at present. However, the Board acknowledges the need to plan for a range of possible outcomes and has opted to further build capital strength while supporting customers and the business franchise. Consequently, the group will not pay any dividends on its ordinary shares for the current financial year, and the reinstatement of dividends in the 2025 financial year and beyond will be reviewed once the FCA's process concludes and any financial consequences for the group have been assessed. The Board is implementing various actions to accrete capital, including optimizing Risk Weighted Assets and continuing cost management initiatives.
The company's financial calendar includes the release of its Half-Year results for the six months ending 31 January 2024 on 19 March 2024, with subsequent updates scheduled for Q3 2024 and the preliminary results for 2024. Close Brothers Group PLC will provide a further update at its Half-Year 2024 results. This announcement contains inside information and is considered to be in the public domain upon its publication via the Regulatory Information Service. For further information, the company has provided contact details for investor relations.