CBG

Close Brothers Group PLC

Banks First-pass screen £663m

310/1000 Overall fit

AI beneficiary 35% 20

Operating leverage 25% 36

Valuation 25% 30

Downside protection 15% 52

First-pass take

UK SME specialist lender in turnaround. AI mentions limited to internal cost automation, no customer AI spending exposure. Strong balance sheet (CET1 13.8%, LCR 1,012%) but cyclical demand and frozen dividend pending FCA motor finance review. RoTE 7.1% well below cost of capital.

Flags

no-valuation-datano-dividendlow-rotelegacy-issuescyclicalturnaroundregulatory-overhang