Latest news with #BankofLondon
Yahoo
14-05-2025
- Business
- Yahoo
‘Significant doubt' revealed over Bank of London's ability to keep operating
The Bank of London, the fledgling clearing bank formerly backed by Peter Mandelson, has revealed it is under investigation by UK regulators, with auditors saying the fallout could throw 'significant doubt' over its ability to keep operating. The news is a fresh blow for the troubled fintech, which has lost its founder and leading board members, including Lord Mandelson and US private equity boss Harvey Schwartz, and halved its workforce since being thrust into the spotlight in September over an embarrassing winding-up petition by the UK tax authority over unpaid debts. The Bank of London (BoL) accounts, filed seven months late, now reveal that it is under investigation by the Bank of England's regulatory arm, the Prudential Regulation Authority (PRA), over potential breaches that pre-date the autumn debacle. Related: Calls for Russia's frozen assets held in Belgium to be used in rebuilding Ukraine 'The firm has been notified by the PRA that it is under investigation in relation to certain historical matters that occurred prior to the change in ownership of the group,' accounts filed at Companies House said. A Jersey-based firm, now known as Fellesskap Group & Holdings, took over as its parent company in May 2024. BoL said it was too early to say how much money it may have to put aside to deal with the continuing investigation. It said it was cooperating with the PRA and had launched its own internal investigation 'into the matters in question'. The revelations came as the bank reported a £12m loss for 2023, in accounts for which auditors at EY would only give qualified support, in part owing to 'inadequate historical records' over a share option plan for staff. Auditors are now concerned about the bank's ability to keep operating. EY said there were questions over the potential fallout of the regulatory investigation and whether the company would be able to raise adequate funding in future. 'There are material uncertainties relating to events or conditions that … may cast significant doubt on the company's ability to continue as a going concern,' the accounts said. As a clearing bank, the BoL does not offer loans but provides clearing and settlement services for business customers, providing the plumbing that allows transactions and payments to take place. It became only the second clearing bank to enter the UK market in 250 years when it launched in 2021, with an aim of disrupting the big four – NatWest, Lloyds, Barclays and HSBC – which maintain a stronghold on this part of the UK financial system. BoL was valued at $1.1bn (£826m) in 2023 and was previously known for its ties to the Labour party. Its founder, the former Barclays executive Anthony Watson, served on the party's business and enterprise advisory council before last summer's general election, while Mandelson, now Britain's ambassador to the US, served on the board as BoL's deputy chair before stepping down last year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Gulf Business
19-03-2025
- Business
- Gulf Business
Insights: Why GCC residents are looking for property in Northern England
Image: Supplied London has long been the favoured destination for investors from the Gulf. However, new data from Nomo, the digital arm of the Bank of London and The Middle East, and Rightmove shows GCC residents are taking more of an interest in other areas of the UK. Northern England and Scotland are becoming popular among property purchasers from the Gulf due to two key drivers — affordability and opportunity. Encompassing major cities like Manchester, Liverpool, Glasgow, Edinburgh, Leeds, and Newcastle, the value proposition of investing in these areas is becoming greater and is appealing to investors and purchasers alike. Affordability is appealing Affordability is a cornerstone of Northern England's appeal. Compared to London, where property prices are the highest in the UK, cities like Manchester and Liverpool present a more accessible entry point into the UK Make no mistake, London is still the most popular destination for GCC buyers, accounting for nearly one-in-four (24 per cent) enquiries made on Rightmove from the Gulf. Its global reputation, secure market, and status as an economic hub makes it a prime location for business and leisure alike. However, this all comes at a price. In 2024, the average house price in London is GBP687,026 – which will often only buy a modest one- or two-bedroom flat in the most desirable areas. This is more than a £100,000 cash increase from 2014, when the average price was GBP576,000. Affordability does not mean a compromise on quality or location. The average house price in Manchester is GBP264,250, Liverpool GBP207,438 The demand in the GCC for Northern property bears this out. Fifteen per cent of all GCC Rightmove inquiries are for the North West – greater than the 'home counties' in the South East (11 per cent), and the South West (9 per cent). Five per cent of all inquiries are for Yorkshire and the Humber, home to the major Northern cities of York, Leeds and Sheffield, and a further 3 per cent for the North East. Combined, these three regions are almost as popular as London. Northern England holds opportunities A lower priced asset brings greater potential for high rental yields, if purchasers are looking for buy-to-let property. With lower acquisition costs in the North and potentially cheaper operational costs, a larger proportion of rental income contributes to returns. The tenant demand in Northern cities is strong too, particularly among students. The cities of Manchester and Liverpool contain 12 universities between them – attracting hundreds of thousands of students looking for accommodation throughout the academic year. Seen as a safe investment due to the steady stream occupants, Nomo is increasingly providing property finance to GCC investors for this exact buy-to-let purpose. But it's not just the North's many universities driving tenant demand. The area has long been a strategic priority for the UK Government to turn into a major economic hub – in recognition that the country's economic output is too dependent on the South. The new government has continued this trajectory – recently investing GBP22bn in Northern-based carbon capture projects. Open for business GCC investors make up 11 per cent of all international Rightmove enquiries for UK property, a disproportionate influence considering the six countries represent under 1 per cent of the world's total population. This suggests that the longstanding links between the UK and the Gulf are going nowhere – and neither is Gulf investors' appetite for UK property. However, when investing in any foreign market, we strongly suggest using local advisers. Particularly in the North of England where there can be substantial differences in potential rental yields between neighbourhoods and towns, on-the-ground local knowledge helps ensure you make informed, strategic decisions. The market trends strongly suggests that there will be continued interest in the North. Prices may increase in time, but the region will likely always be more affordable than the South. Those from the Gulf are recognising the opportunity this region brings, both in terms of making a first-time purchase of UK property and as a rental opportunity. The writer is the chief commercial officer, Bank of London and The Middle East.
