British lender OSB earnings fall on fraud-related provisions

By Reuters4 days ago

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April 8 (Reuters) - British bank OSB Group OSBO.L posted a 9% drop in annual earnings on Thursday, even as lending picked up, bogged down by impairment provisions set aside to cover a potential third-party fraud.

OSB set aside 20 million pounds ($27.53 million) as a provision for the isolated incident, smaller than the 28.6 million pounds in potential credit losses that the company flagged last month.

The specialist mortgage lender had delayed publishing its annual results in March and hired forensic expert Smith & Williamson to investigate after the company became aware of the potential fraud at a non-bank lender it provided secured funding to.

Underlying pretax profit fell to 346.2 million pounds in the 12 months to Dec 31, 2020, from 381.1 million pounds a year earlier, while its net loan book grew 4% to 19.2 billion pounds, as mortgage lending picked up sharply towards the end of the year.

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