Close Brothers Group (CBG)

Sector:

Banking

Index:

FTSE 250

418.20p
   
  • Change Today:
      17.00p
  • 52 Week High: 976.50p
  • 52 Week Low: 299.20p
  • Currency: UK Pounds
  • Shares Issued: 150.49m
  • Volume: 492,685
  • Market Cap: £629.34m
  • RiskGrade: 146

Virgin Money will struggle to re-rate, says Berenberg

By Michele Maatouk

Date: Monday 26 Sep 2022

LONDON (ShareCast) - (Sharecast News) - Virgin Money tumbled on Monday as Berenberg re-established coverage of the shares at 'hold' from 'under review', saying the bank will struggle to re-rate given potential revenue headwinds and a sector-lagging return on tangible equity.
In a broader note on the sector, Berenberg initiated coverage of OSB Group at 'buy', and upgraded Close Brothers to 'buy' from 'hold'.

"These three UK banks have two unifying features, in our view," it said.

"First, they are small, with a market capitalisation of £1.5bn-2.1bn. Second, they are cheap. In other respects, however, they are more different than they are alike. We believe that these differences can be a source of strength.

"Specifically, the business models of Close Brothers and OSB Group - i.e. the special ones - support attractive pricing (including as interest rates rise) and growth. While cyclical headwinds exist, we believe that this structural strength is undervalued, which drives our buy rating for both banks - OSB Group is our preferred small UK bank.

"By contrast, we expect Virgin Money to experience falling revenues and a sector-lagging RoTE, impeding its ability to rerate and motivating our hold rating."

Berenberg noted that Virgin Money operates in mainstream lending markets, but lacks the low-cost deposit funding advantage of larger peers.

"While the bank's strategy implicitly recognises these weaknesses, plans to grow low-cost deposits may face headwinds that, in turn, could further impede SME and mortgage lending growth," it said.

At 1040 BST, Virgin shares were down 9.6% at 127.90p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CBG Market Data

Currency UK Pounds
Share Price 418.20p
Change Today 17.00p
% Change 4.24 %
52 Week High 976.50p
52 Week Low 299.20p
Volume 492,685
Shares Issued 150.49m
Market Cap £629.34m
RiskGrade 146

CBG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.34% above the market average99.34% above the market average99.34% above the market average99.34% above the market average99.34% above the market average
64.71% above the sector average64.71% above the sector average64.71% above the sector average64.71% above the sector average64.71% above the sector average
Price Trend
81.37% below the market average81.37% below the market average81.37% below the market average81.37% below the market average81.37% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income
75.54% above the market average75.54% above the market average75.54% above the market average75.54% above the market average75.54% above the market average
46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average
Growth
93.62% below the market average93.62% below the market average93.62% below the market average93.62% below the market average93.62% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 3
Buy 2
Neutral 3
Sell 1
Strong Sell 0
Total 9
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CBG Dividends

  Latest Previous
  Final Interim
Ex-Div 19-Oct-23 23-Mar-23
Paid 24-Nov-23 26-Apr-23
Amount 45.00p 22.50p

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 250,080 @ 418.20p
16:35 74 @ 418.20p
16:35 218 @ 418.20p
16:35 2,050 @ 418.20p
16:35 1,515 @ 418.20p

CBG Key Personnel

Chair Michael N Biggs

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