London-based bank Close Brothers said it expects to set aside £165mn to cover the costs of a probe into the potential mis-selling of car finance loans.
The FTSE 250 bank last year suspended its dividend and launched a £400mn capital plan that included the sale of its asset management business, to prepare for redress and legal costs linked to the probe by the Financial Conduct Authority. It said at the time that it was too early to estimate the size of the provision.
The UK Treasury earlier this year sought permission to intervene in a Supreme Court case linked to car loan commissions in a bid to protect lenders.
This is a developing story
