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Full Year 2021 Close Brothers Group PLC Earnings Call Transcript

Published Sep 28, 2021

14 pages (10058 words) — Published Sep 28, 2021

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Abstract:

Edited Transcript of CBRO.L earnings conference call or presentation 28-Sep-21 8:30am GMT

Brief Excerpt:

...Good morning, and welcome to Close Brothers' Full Year 2021 Results Presentation. I'll start with some reflections on the key elements of our performance this year. I'll then hand over to Mike to talk through our financials and I'll come back to give an update on our business and strategy. You can ask a question at the end, either via the telephone conference line or alternatively via the webcast. COVID-19 continued to present challenges and impact our customers and businesses in the last year. Against this backdrop, we delivered a strong financial and operational performance. Both income and preprovision profit were up by 10%. Adjusted operating profit increased by 88%, and we delivered a strong ROE of 14.5%, up from 8% in the prior year. We delivered growth of 10.9% in our loan book, the fastest rate of growth since 2016 with a strong net interest margin of 7.7%. Impairment charges were down on the prior year, reflecting a strong underlying credit performance across the commercial, retail...

Report Type:

Transcript

Source:

Thomson StreetEvents

Company:

Close Brothers Group PLC

Ticker

CBRO.L

Time

8:30am GMT

Format:

PDF

The following is excerpted from the question-and-answer section of the transcript. (Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session) Question: Benjamin Toms - RBC Capital Markets, Research Division - Analyst : First, on dividends and the second is on loan growth. On the dividend, how should we think about the dividend of 60p? Does this constitute a rebasing of the progressive dividend? Or should we think of full year '21 as still being extraordinary if the base for progressive dividends going forward still being the 66p in FY '19. And on loan growth. The loan growth in 2021 was around 11%, and as expectations for the next couple of years, last time I looked to around 7%. Government loan schemes had an impact on the numbers this year for sure. But in the context of loan growth in the first couple of months of this year, is FY '22 more likely to be in line with FY '21 or more in line with consensus expectations? Question: Edward Hugo Anson Firth - Keefe, Bruyette & Woods Limited, Research Division - Analyst : I just had 2 questions. One was, have you got any update you can give us in terms of the IRB or any kind of numbers that we could start to think about putting around some of the savings that potentially may come through? I know there's uncertainty, but I guess you must have done some benchmarking, et cetera. So that would be question number one. The second question is there's obviously a lot of talk about interest rates. At the moment, it seems to be a big theme. I think in the past, you're negatively correlated to rising rates that make sense or you are sort of reverse of everybody else. Could you perhaps give us some sort of numbers again around that? What the sort of sensitivity maybe for a 50 basis point rise, something like that? REFINITIV STREETEVENTS \| www.refinitiv.com \| Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 28, 2021 / 8:30AM, CBRO.L - Full Year 2021 Close Brothers Group PLC Earnings Call

The following is excerpted from the question-and-answer section of the transcript.

(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)

Question: Benjamin Toms - RBC Capital Markets, Research Division - Analyst : First, on dividends and the second is on loan growth. On the dividend, how should we think about the dividend of 60p? Does this constitute a rebasing of the progressive dividend? Or should we think of full year '21 as still being extraordinary if the base for progressive dividends going forward still being the 66p in FY '19. And on loan growth. The loan growth in 2021 was around 11%, and as expectations for the next couple of years, last time I looked to around 7%. Government loan schemes had an impact on the numbers this year for sure. But in the context of loan growth in the first couple of months of this year, is FY '22 more likely to be in line with FY '21 or more in line with consensus expectations?

Question: Edward Hugo Anson Firth - Keefe, Bruyette & Woods Limited, Research Division - Analyst : I just had 2 questions. One was, have you got any update you can give us in terms of the IRB or any kind of numbers that we could start to think about putting around some of the savings that potentially may come through? I know there's uncertainty, but I guess you must have done some benchmarking, et cetera. So that would be question number one. The second question is there's obviously a lot of talk about interest rates. At the moment, it seems to be a big theme. I think in the past, you're negatively correlated to rising rates that make sense or you are sort of reverse of everybody else. Could you perhaps give us some sort of numbers again around that? What the sort of sensitivity maybe for a 50 basis point rise, something like that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 28, 2021 / 8:30AM, CBRO.L - Full Year 2021 Close Brothers Group PLC Earnings Call

Half Year 2024 Close Brothers Group PLC Earnings Call Transcript – 2024-03-19 – US$ 54.00 – Edited Transcript of CBRO.L earnings conference call or presentation 19-Mar-24 9:30am GMT

Full Year 2023 Close Brothers Group PLC Earnings Call Transcript – 2023-09-26 – US$ 54.00 – Edited Transcript of CBRO.L earnings conference call or presentation 26-Sep-23 8:30am GMT

Half Year 2023 Close Brothers Group PLC Earnings Call Transcript – 2023-03-14 – US$ 54.00 – Edited Transcript of CBRO.L earnings conference call or presentation 14-Mar-23 9:30am GMT

Preliminary Q4 2022 Close Brothers Group PLC Earnings Call Transcript – 2022-09-27 – US$ 54.00 – Edited Transcript of CBRO.L earnings conference call or presentation 27-Sep-22 8:30am GMT

Half Year 2022 Close Brothers Group PLC Earnings Call Transcript – 2022-03-15 – US$ 54.00 – Edited Transcript of CBRO.L earnings conference call or presentation 15-Mar-22 9:30am GMT

Close Brothers Group PLC Investor Event - Corporate Call Transcript – 2021-06-15 – US$ 54.00 – Edited Transcript of CBRO.L conference call or presentation 15-Jun-21 8:00am GMT

Half Year 2021 Close Brothers Group PLC Earnings Call Transcript – 2021-03-16 – US$ 54.00 – Edited Transcript of CBRO.L earnings conference call or presentation 16-Mar-21 9:30am GMT

Full Year 2020 Close Brothers Group PLC Earnings Call Transcript – 2020-09-22 – US$ 54.00 – Edited Transcript of CBRO.L earnings conference call or presentation 22-Sep-20 8:30am GMT

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MLA:	Thomson StreetEvents. "Full Year 2021 Close Brothers Group PLC Earnings Call Transcript" Sep 28, 2021. Alacra Store. Apr 26, 2024. <http://www.alacrastore.com/thomson-streetevents-transcripts/Full-Year-2021-Close-Brothers-Group-PLC-Earnings-Call-T14995288>

APA:	Thomson StreetEvents. (2021). Full Year 2021 Close Brothers Group PLC Earnings Call Transcript Sep 28, 2021. New York, NY: Alacra Store. Retrieved Apr 26, 2024 from <http://www.alacrastore.com/thomson-streetevents-transcripts/Full-Year-2021-Close-Brothers-Group-PLC-Earnings-Call-T14995288>

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Full Year 2021 Close Brothers Group PLC Earnings Call Transcript

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