UK Bank Close Brothers Loses Third of Value Amid Market Probe
- 145-year-old lender extends rout Friday as RBC cuts rating
- Dividend in focus as FCA reviews motor, premium finance
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Close Brothers Group Plc extended a share price rout that has wiped out a third of its value this year, amid ongoing reviews by the Financial Conduct Authority of two markets in which the 145-year-old British bank operates in.
The stock fell as much as 5% on Friday, as RBC Capital downgraded its rating due to the regulator’s separate reviews of both motor financing and insurance taken out on credit, known as premium finance. Close Brothers, which also owns City of London stockbroker Winterflood Securities Ltd, has seen £424 million ($537 million) erased from its market capitalization amid this year’s 35% stock plunge, according to data compiled by Bloomberg.