June 30 (Reuters) - British sub-prime lender Non-Standard Finance said on Wednesday it will place its guarantor loans division into a managed run-off, and eventually shut it down, due to the COVID-19 crisis and increased regulatory scrutiny.
NSF’s plans to close the unit come after larger rival Provident Financial’s decision to exit the home credit market altogether, while another guarantor lender Amigo is facing potential insolvency after a surge in complaints against it.
NSF reiterated that it would raise 80 million pounds to strengthen its balance sheet, as it reported a normalised pretax loss of 35.2 million pounds for 2020 compared to a profit of 14.7 million pounds a year earlier.
Its shares slumped 12% in early trading on the London Stock Exchange. (Reporting by Muvija M in Bengaluru; editing by Carolyn Cohn)