Update in relation to Motor Finance Commissions

Following publication of the Financial Conduct Authority's consultation paper on 7 October 2025, Close Brothers ("the group") is continuing to assess the potential impact and implications of the proposed redress scheme in respect of motor finance commissions.

While uncertainty in relation to the outcome of the consultation remains, the group's initial assessment is that if implemented in its current form, the proposed scheme is likely to result in a material increase in its existing provision of £165 million. This remains subject to ongoing review of the proposal and analysis of its potential impact on the group.

The group remains confident in its capital strength, with a Common Equity Tier 1 ratio of 13.8% (14.3% on a pro-forma basis)1 at 31 July 2025, significantly above our applicable requirement of 9.7%.

The group will continue to update the market as and when appropriate.

Footnote

1 Pro-forma as at 31 July 2025, reflecting the estimated CET1 benefit from the sale of Winterflood. The recently announced sale of Winterflood Securities is expected to increase the group's CET1 capital ratio by c.55 basis points on a pro-forma basis, of which c.30 basis points will be recognised upon completion, with a further c.25 basis points expected in due course from the reduction in operational risk weighted assets.