Adrian Sainsbury, boss of merchant bank Close Brothers, has taken a “temporary medical leave of absence” from the business.
In a statement to the market, the bank said it has put in place “robust temporary cover arrangements” to ensure continuity in the delivery of the group’s strategy during this period.
Mike Morgan, group finance director, will assume Sainsbury’s primary responsibilities while chair Mike Biggs and other members of the senior management team will support.
The bank said it would provide a further update “in due course”. Its full year results will be announced on Thursday as planned.
Sainsbury was appointed back in 2020, having been managing director of Close Brothers’ banking division since 2016 and a director at the bank since 2013.
He has previously held executive roles at Barclays, RBS and Bank of Ireland and was chief executive of ANZ Bank in Europe.
Close Brothers’ results later this week will be closely watched by investors. Its shares are down over 31 per cent after the Financial Conduct Authority (FCA) announced a review into historic motor finance loans.
Back in its half year results in March, the bank announced plans to raise around £400m to deal with costs associated with the review.
RBC has estimated that Close Brothers could be on the hook for up to £350m in compensation fees – almost half of its current market capitalisation.
The FCA is due to set out its next steps on the motor finance review in May 2025. RBC expects Close Brothers to take a total provision of £250m between 2025 and 2026.