Bank of London has revealed another steep loss, as the embattled clearing bank's parent company, Oplyse Holdings, posted a £46.9 million loss for 2024. This brings the firm's cumulative deficit to £167.7 million, according to fresh accounts delayed for the second consecutive year.
Financial Struggles and Staff Reductions
The accounts for Oplyse Holdings, formerly known as The Bank of London Group Holdings before its renaming in March 2025, also showed a significant reduction in workforce. The average number of employees fell to 122 in 2024, a drop of nearly 30% from 175 in the previous year.
Despite the losses, the company managed to achieve a positive total equity position of £18.1 million, thanks to an additional £65.2 million injection from investors. Total investment at the year-end reached £171 million. Net interest income more than doubled to £2.6 million, up from £1.1 million in 2023, driven by interest earned on customer deposits held at the Bank of England.
Change in Ownership and Regulatory Issues
The bank underwent a change in ownership and control in late 2024, with a new investor group led by Mangrove Capital Partners taking the helm. In October 2024, Peter Mandelson resigned from his position on the Bank of London's board following a series of controversies, including a HMRC winding-up petition.
The bank's founder, Anthony Watson, who has donated nearly £500,000 to the Labour party and politicians since 2015, stepped down as chief executive in September 2024. Watson had been appointed chair of Labour's business and enterprise advisory council in 2016.
Regulatory Fine and Misconduct
In March, the banking watchdog imposed a £2 million fine on the fintech and its parent company for misleading the regulator and failing to act with integrity. This marked the first time the watchdog took action against a firm for failing to conduct its business with integrity, and also the first enforcement action against a parent financial holding company.
The watchdog's investigation, covering the period between 7 October 2021 and 22 May 2024, found that the Bank of London repeatedly misled the Prudential Regulation Authority (PRA) about their capital positions, including providing several fabricated documents intended to provide a false picture of the capital position.
A spokesperson for the Bank of London stated at the time: "The bank, its new management and its investors remain committed to an open, transparent and constructive relationship with the PRA and FCA."
