Close Brothers Estimates £320m Redress Cost

Close Brothers Group estimates FCA motor‑finance redress scheme cost at about £320 million, close to its £294 million provision as of 31 Jan 2026.
The £320 million cost would cut CET1 ratio by roughly 25 basis points to 14.0% pro‑forma, still above the 12‑13% medium‑term target.
720,000 motor‑finance loans (640k DCA, 80k non‑DCA) qualify, with average £500 payment per customer, below the £829 industry average.
Delivery costs are estimated at £66 million (excluding £14 million already incurred), and a 5% claim‑rate shift would alter the estimate by £18 million.