Close Brothers still taking higher impairments

In a rising rate environment, specialist lenders have much to fear from rising debt provisions linked with macroeconomic uncertainty, which has a way of chipping away at higher interest income before investors see the benefit. This is largely why full-service specialist lender and broker Close Brothers (CBG) has endured a long and painful decline in its share price, with none of the interest rate honeymoon enjoyed by the high street banks last year. In fact, there is little sign that cost pressures will ease for Close Brothers before 2025.