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London Scottish Bank Scraps Dividend As Losses Hit £16m

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http://business.timesonline.co.uk/tol/busi...icle3436379.ece

London Scottish Bank, which lends to lower-income families and operates a as debt collector, has scrapped its dividend after falling £15.7 million into the red last year amid soaring bad debts. The bank made a £15 million profit the year before.

The loss was substantially worse than the £11 million expected by the market.

London Scottish, which has been in discussions with the City's top watchdog the Financial Services Authority (FSA) over its capital base for five months, said that it had a capital shortfall of £12.7 million on January 1.

It has been ordered by the FSA to increase reserves dramatically, but said today that it has agreed a plan, which will mean selling parts of the business, reducing lending volumes, scrapping the dividend and seeking alternative funding.

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The bank said it will consider selling its invoice factoring business, may close or sell its consumer lending business and concentrate on debt collecting.

Further details will be provided at the annual meeting on April 23.

For the year to October 31, losses from its unsecured consumer credit business jumped to £22.4 million compared with a £5 million profit in the previous year. Bad debts for this operation climbed 25 per cent to £32.3 million.

Profits from debt collection rose by 57 per cent to £13.9 million and from its mortgage and secured lending business by 20 per cent to £3.3 million.

The bank said trading conditions continued to be tough in the three months to the end of January, with unsecured consumer credit lending making a £1.9 million loss compared with a £600,000 profit.

Profits from debt collection dropped from £3.7 million to £1.9 million.

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The bank said trading conditions continued to be tough in the three months to the end of January, with unsecured consumer credit lending making a £1.9 million loss compared with a £600,000 profit.

Profits from debt collection dropped from £3.7 million to £1.9 million.

I hope they lose as much money as possible, they're loan sharks.

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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