A welcome start to the week for Lloyds Banking Group as the company digested that Court of Appeal ruling over the motor finance saga and also provided an update in the wake of the FCA’s proposed next steps in terms of settlement. Lloyds had already set aside in excess of £1bn to cover costs here and a note issued by the lender this morning advises that it doesn’t believe any material increase here will be necessary. Markets have been quick to applaud the news, with the Lloyds share price up more than 6% in the first few minutes of trade.
The strong start seen by Lloyds has been comprehensively eclipsed by peer Close Brothers. Whilst a smaller entity overall, the company has a greater proportion of exposure to the motor finance sector and its stock was hit hard by the announcement of the original FCA review back in January 2024. Positive announcements today in response to the findings have however boosted confidence with the gains helping recover some of the historical losses accrued. The Close Brothers share price is up more than 23% shortly after the open.
Online marketplace operator Auction Technology Group has this morning announced the acquisition of vintage furniture, décor and art auction house Chairish LLC for $85m. In a note to the market, the deal was explained as strengthening ATG's position in the Arts & Antiques market. The acquisition benefits from operational synergies and unlocks multiple growth opportunities. The market wasn’t quite as enthusiastic on the news however, despite the expectation that it will be EBITDA positive in FY26 and accretive to EPS by FY27. The Auction Technology Group share price was down more than 20% in early trade.
Most read news on Investegate this morning
Motor Finance Update - - Lloyds Banking Group (LLOY)
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Close Brothers - FCA Consultation - - Close Brothers Group (CBG)
