London South East were delighted to welcome Incanthera to our April Investor Webinar (6.04.2021), where Chairman Tim McCarthy and CEO Dr Simon Ward presented and took questions. Watch the full interview here.

Less Ads, More Data, More Tools Register for FREE

OSB writes down GBP20 million in fraudulent loan case, earnings fall

Thu, 8th Apr 2021 11:48

(Alliance News) - OSB Group PLC on Thursday reported a decline in underlying profit in 2020, after recording a GBP20 million impairment because of potential fraud by a third party.

Underlying pretax profit fell 9.2% to GBP346.2 million from GBP381.1 million in 2019. In the first full year after the merger with Charter Court Financial Services in October 2019, statutory pretax profit increased 25% to GBP260.4 million from GBP209.1 million. Net interest income rose 37% to GBP472.2 million from GBP344.7 million.

Shares in the Kent-based lender were down 0.4% to 454.80 pence in London on Thursday.

The results were delayed after OSB discovered potential fraudulent activity by a third party which owed GBP28.6 million. After an investigation, OSB decided to write down the value of the loan by GBP20 million. It said it believes this is an isolated incident.

OSB proposed a 14.5p per share dividend, its first after suspending the 2019 final dividend on the outbreak of Covid-19. The payment represents 25% of underlying earnings, in line with the company's dividend policy.

The FTSE 250-listed lender said its performance was resilient in a challenging year, and that applications for residential and buy-to-let mortgages have recovered to near pre-pandemic levels.

OSB expects underlying net loan book growth of 10% this year, as it has a strong pipeline of new business. It sees the net interest margin recovering to the 2019 level of 243 basis points, after narrowing to 216 basis points in 2020.

"The foundations of our business remain extremely robust, with a very strong capital position and a resilient business model," Chief Executive Andy Golding said.

By Ivan Edwards; ivanedwards@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Related Shares

More News

UK dividends calendar - next 7 days

UK dividends calendar - next 7 days

8 Apr 21 16:05

OSB writes down GBP20 million in fraudulent loan case, earnings fall

OSB writes down GBP20 million in fraudulent loan case, earnings fall

8 Apr 21 11:48

OSB to pay 25% of earnings as dividend

(Sharecast News) - OSB announced a dividend worth 25% of earnings as the bank reported a 9% drop in underlying annual profit as bad debts rose and margins shrank.

8 Apr 21 07:50

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

1 Apr 21 16:15

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.