London Scottish Bank has posted a £15,732,000 loss before tax including its discontinued operations for the year end to October 2007.
The bank made losses of £22.4m from unsecured consumer credit down from a profit of £5m the previous year.
It is now to concentrate on its debt collection business Robinson Way which made £13.9m last year. Mortgages and secured lending saw profits up 20 per cent to £3.3m from £2.8m in 2006 while its broking division made a loss of £2.9m.
The bank says it is making good progress with the FSA and that its regulatory capital requirement is now finalised. The shortfall in capital as at January 2008 is £12.7m and a plan has been agreed with the FSA to remedy this shortfall.
The company says it is assessing the capital structure most appropriate to its future requirements and options to redress the shortfall including looking at financing alternatives to increase its capital base.
London Scottish Bank chairman Peter Cordrey says: “Although 2007 was a difficult year for the group, the development and growth of Robinson Way’s successful debt collection business has continued with profits up 57 per cent to £13.9m. Looking ahead, in future the Group’s strategy will focus on the further development and growth of Robinson Way whilst reducing the capital employed in its lending divisions. We are pleased to have finalised the regulatory capital requirement and are working with our advisers to examine the options to redress the current shortfall in regulatory capital.”