Hi ValueSnatcher,
Spot on. I just received an email back from the CFO, Michael Eadie, '..the vast majority of the other expenses line in the income statement represents the loan provision charge for the new consumer lending volumes written during the year. As you may have noted already we have an accounting policy whereby we take up the full expected life of loan loss provision up-front as we write loans. As a result of the large growth of the lending book over the year (from $19m to $63m) this represented a large P&L expense item as well as being responsible for most of the movement in the other expenses line in 2014 relative to 2013.'
Impressed by his quick response.
CCP Price at posting:
$9.10 Sentiment: Hold Disclosure: Held
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