Close Brothers shares fell sharply on Monday as investors digested reports that a scandal within its motor finance division threatens to deliver the lender’s worst-ever returns in Europe.
The decline reflects growing concern over potential financial exposure and reputational damage stemming from the controversy, which has yet to be fully quantified by the company.
The sell-off underscores the vulnerability of UK financial stocks to operational and compliance risks, particularly in specialized lending segments.
With no immediate clarification from management on the scale of the impact, market participants are pricing in a cautious outlook for the remainder of the quarter.
This development arrives amid a broader downturn in European equities.
BMW shares recently hit their lowest level in over five years after issuing a profit warning and slashing its 2026 outlook, citing a severe slowdown in demand.