Close Period Trading Update

    12 November 2003

                           London Scottish Bank plc                            

  Close period trading update reports continued progress for the second half   

London Scottish Bank ("LSB"), the speciality provider of financial services,
today issued the following trading update for the year ended 31 October 2003.

The Group has continued to progress during the second half of the financial
year, maintaining the increase in new business volumes, whilst investing
heavily in the infrastructure of the business as planned.

Consumer credit new business has grown year on year by increasing numbers of
direct unsecured and secured customers with less reliance on door-to-door home
collections for new business. The Personal Loan Centre and the Secured Broking
Division continue to be major new business suppliers to the Group for both
unsecured and secured lending. Pacific Homeloans, acquired in February, is
performing in line with expectations and is generating new business for the
Consumer Credit division.

The Group's Factoring and Leasing divisions have continued to progress during
the second half. Whilst the market is competitive the Factoring division has
built a high quality business with a strong return on investment. Leasing
continues to build its receivables book and improve its contribution to the
Group's profits.

The Group's overall bad debt charge as a ratio to receivables will show a
slight increase on last year as provisions have increased in the traditional
home collected credit business. Bad debt charges in factoring and leasing will
be less than last year.

Robinson Way, the Group's debt collections division, has experienced a strong
second half and performed ahead of expectations. Whilst the debt collection
market is still competitive, new accounts from our traditional suppliers have
increased. Moreover, Robinson Way is increasing its contribution to the Group's
profits, benefiting from the additional income provided by the debt portfolios
bought over the last three years.

The preliminary results will be announced on Wednesday, 14 January 2004.

Enquiries

London Scottish Bank Tel: [phone]

Roy Reece, Chief Executive

Mark Tatersall, Finance Director

Citigate Dewe Rogerson Tel: [phone]

Patrick Toyne-Sewell

Sarah Gestetner



END