Cyber attack brings Latitude to full-year loss
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The news: Consumer finance company Latitude swung to a full-year loss after results were dented by costs relating to a cyber attack in March 2023.
The numbers: Latitude recorded a statutory loss after tax of $159.1 million, compared with a statutory profit after tax $36.3 million in 2022. Cash NPAT decreased by 88% to $18.4 million from $153.5 from a year earlier.
In March 2023, Latitude confirmed that criminals obtained data via a third-party to access its network, including 308,000 bank account numbers and 143,000 credit card and credit card account numbers.
Latitude said that despite a strong start to 2023, the group incurred $68.3 million in cyber related costs and provisions. Cyber-incident costs net of insurance recoveries during the year accounted for $18.7 million, while a $49.6 million provision had been raised for customer remediation costs, regulatory enforcement activities, and future legal costs.
The context: In November, group chair Mike Tilley announced he would extend his tenure to April 2025 so the credit provider can better respond to the cyberattack that involved the theft of the personal information of almost eight million customers.
CEO and managing director Bob Belan had only been in his role for one month when the attack was discovered, while Tilley had been due to retire from the board at the end of 2023.
What they said: Belan said 2023 had been the company's most challenging year due to the cyber attack along with macro conditions leading to lower consumer lending demand and higher funding costs, and inflationary pressures had impacted its ability to deliver profit growth to shareholders.
"We are optimistic about Latitude's growth potential as economic conditions pivot in our favour and as the benefits of the management actions taken and planned for 2024 roll through," he said.
The source: ASX announcement
