Close Brothers shares rose nearly 11% after the banking group reported £36 million in cost savings for the year ended July 31, exceeding its £25 million target. It expects annual savings to surpass £60 million by the end of 2027 as it expands artificial intelligence (AI) and consolidates support functions. The savings followed plans announced in March to remove nearly a quarter of its 2,600 employees and reduce its office network. Close Brothers said the next restructuring phase will focus on centralizing support functions, outsourcing and offshoring work, and accelerating AI adoption, with no further job cuts planned beyond the 600 already announced. The group reported a £60.3 million pre-tax operating loss, including £164.7 million in additional provisions for the car finance redress scheme, taking total provisions to about £320 million. The loss was nevertheless down from £122.4 million in 2024-25. The Financial Conduct Authority (FCA), the U.K. financial regulator, paused compensation plans earlier this year amid legal challenges to the scheme. Close Brothers will not pay a final dividend for 2026 because of continued uncertainty over the legal challenges and their potential financial impact. The group is also strengthening capital by selling Winterflood and its asset management businesses. Chief executive Mike Morgan said Close Brothers is now a simpler, more focused specialist bank and remains committed to restoring double-digit returns by 2027-28 and increasing them thereafter.