October 16, 2019 / 7:02 AM / a month ago

UPDATE 1-Secure Trust Bank sees slow loan demand on Brexit jitters

(Adds background on Brexit)

Oct 16 (Reuters) - Secure Trust Bank Plc said on Wednesday consumers and businesses were more cautious in taking loans ahead of the planned Oct. 31 deadline for Brexit, with the company recording slower demand last month.

The deepening crisis over a divorce deal has hit every sector of the British economy, as businesses put off major investment decisions until there is more clarity on what terms Britain will leave the European Union, or indeed whether it will leave at all.

The retail bank said it was still "comfortable" with its full-year outlook, but political developments in the coming weeks could impact the economy and the company's results in the final quarter. (reut.rs/2MlIOoe)

Differences over the terms of the split have narrowed significantly, according to officials and diplomats involved in negotiations, but with talks which started on Tuesday going on past midnight, it was still unclear if London could avoid postponing its departure.

Secure Trust also said on Wednesday it does not expect the Financial Conduct Authority’s planned changes to how car retailers collect commission to have a negative impact on the company’s motor finance arm.

The markets watchdog on Tuesday proposed banning auto dealers and brokers from receiving commission linked to interest rates on loans used to finance car purchases, a step it said would save consumers 165 million pounds ($210.14 million) annually. ($1 = 0.7852 pounds) (Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)

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