OneSavings Bank blames adverse economy for pre-tax loss of £8.4m

OneSavings Bank, which trades as Kent Reliance Provident Society, has reported a pre-tax loss of £8.4m for the first half of 2011.

The lender says this is due to the economic environment, sustained pressure on margins because of low interest rates and significant costs incurred to up-skill the business.

No comparative figure is available as this is the first reporting period for the bank, which was called OneSavings before it took on the assets and liabilities of Kent Reliance Building Society in February 2011.

The bank’s interim report also reveals that shareholder JC Flowers made a capital injection of £15m into the business on August 31.

Malcolm McCaig, chairman of OneSavings Bank, says: “The bank has faced a challenging initial period due to adverse economic conditions and sustained pressure on interest rates.

“These factors are expected to continue for the remainder of 2011 and into the following year.”

He adds that the firm’s focus is on improving operational and resourcing issues.

Kent Reliance Provident Society offers savings and investment, mortgage and insurance products as a trading brand of OneSavings Bank, whose group of companies also includes brands such as Jersey Home Loans and Guernsey Home Loans.