We make no changes to our existing forecasts; see our report, Enough! (25 Nov) when we “opportunistically” turned positive on the stock. Our EPS forecasts of 138.1p/143.8p/149.0p through FY22/FY23/FY24e are ahead of current Bloomberg consensus by just 3.0%/1.4%/0.1% respectively. However, we suspect that the primary difference in FY22e relates to our relatively constructive assumptions on the outlook for impairments. CBG enjoys a premium valuation relative to all UK peers within our existing coverage, now trading on 1.6x/1.5x/1.4x/1.3x FY21/FY22/FY23/FY24e tNAV (Fig 1, page 1). We regard this as “generous” in relative terms, albeit “supportable” in absolute terms, in the context of our ROTE forecasts of 14.9%/14.4%/14.0% through FY22/FY23/FY24e, (Fig 2, page 2). We expect a slowing pace of loan growth in FY22. After a small net contraction in FY20, CBG achieved net loan growth of 10.9% in FY21. However, this was entirely driven by CBG’s enthusiastic participation in the Government-backed CBILS programme, which is now closed to new applications. Existing approvals provided a tailwind at the start of FY22, though we model net loan growth of only 6.3%/3.6%/3.5% for FY22/FY23/FY24e (Fig 3, page 3). CBG’s FY21 outturn was broadly flat vs FY19, with an exceptional contribution from the Securities business offsetting the impact of elevated impairments within the Banking division. Looking ahead, we anticipate only modest EPS growth (3.4% CAGR through FY22-FY24e) with a recovery in the Banking division substantially offset by a fading contribution from Securities (Fig 4, page 3). CBG is due to release a pre-close statement on 21 January 2022, ahead of H1 FY22 ending on 31 January 2022. We would anticipate few surprises. On 9.7x FY24e EPS we downgrade to Hold (from Buy).