18th Mar 2021 13:47
(Alliance News) - OSB Group PLC on Wednesday announced that its results for 2020 have been delayed due to "potential fraudulent activity" by a third party to which it has provided funding.
OSB shares sunk 4.3% at 442.00 pence each in London on Thursday.
The Chatham, England-based bank offers buy-to-let and residential sub-segments, and also provides funding lines to third parties secured primarily against property-related mortgages.
OSB said it has "very recently become aware of potential fraudulent activity by one of these third parties".
"The group believes that this is an isolated incident and is appointing Smith & Williamson LLP to carry out an investigation of the third-party company on the group's behalf," the bank said.
For 2020, underlying pretax profit is expected at GBP366.2 million, down from GBP381.1 million in 2019.
OSB does intend to recommend a dividend for 2020.
Chief Executive Andy Golding said: "I am proud of the group's performance in a very challenging year. Our business model proved its financial and operational resilience in 2020. Our customers, clients, colleagues and communities were always front of mind as we supported all stakeholders to the best of our ability, whether that was by providing mortgage payment deferrals, supporting colleagues' well-being or continuing to allow our customers to access financial services in the easiest and safest way."
By Greg Roxburgh; [email protected]
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