Close Brothers Group PLC (LSE:CBG) shares have rallied as interest rates have started to drop while there has been an easing in concerns over the FCA motor finance probe.
At 543p, the shares are up 80% from their 2024 low in February.
The bank is also seen as a potential gainer from the watered-down rules for Basel 3 just announced by the Bank of England, something that might be touched on next week.
Full-year results are due Thursday 19 September with UBS forecasting underlying second-half profits of £73 million, down 22% from the first six months.
Higher costs and impairment charges will offset an expected 2% growth in income (banking flat, CBAM and Winterflood up), adds UBS.
The dividend has already been cancelled due to the FCA uncertainty, with UBS expecting a £50 million below-the-line motor provision out of a total expectation of £280 million to end year end 2026.
“We expect the focus of results to be on loan pricing and fee, cost growth, asset quality, and the outlook for Banking NIM, volumes and costs, sustainability of any turnaround in Winterflood profits and pace and scale of improvement in CBAM [asset management] operating margins,” said the Swiss bank.