2nd April 2019
In 2018, the Board of Directors after consultation with its Shareholders embarked on a full review of the Bank’s business and operation and decided to withdraw from certain of its activities which were performing below expectations.
In July 2018, the Motor Lending division was sold to Paragon Plc. Recently there have been press reports which have commented upon our withdrawal of lending to Zebra Finance Ltd (“Zebra”) who had been a major client of the bank. Despite a notice period being given to Zebra, it was unable to secure alternative arrangements and was therefore compelled to withdraw from new lending. However, Zebra has confirmed that it will be fully maintaining the service to customers belonging to both Raphaels and Zebra.
The bank remains active in a number of areas, and retains its deposit taking license from the PRA with whom it maintains regular dialogue. The Board is actively exploring its strategic options and will make further announcements in this regard when it is in a position to do so.
As a result of the bank ending its motor lending as well as its lending through Zebra, it finds itself in a highly liquid position. Therefore, Raphaels is not currently offering new or roll over deposits or bonds to its valued retail banking customers. The bank has excess regulatory capital and liquidity and is comfortably repaying all maturing bonds, deposits and interest to customers when due. The bank remains solvent and well managed.