Consumer finance business Latitude Group is likely to scrap its first-half dividend and report a loss of up to $105 million, as it bears the brunt of rising bad debts and fallout from a crippling cyberattack that compromised the personal information of 7.9 million people.

Latitude issued a profit warning on Friday and revealed the hit it would take from a March cyberattack, which exposed personal details of customers sourced from retailers such as Harvey Norman, JB Hi-Fi, Coles and Apple.

In a sign of the attack’s broad impact across the company, Latitude said it had been forced to stop, or severely restrict, opening new accounts for about five weeks. The company was also unable to contact customers who had not paid their bills during this period because key systems were shut down.

While regular commercial operations have been restored, Latitude said it would make less income and it would take higher provisions for bad debts, because the shutdown in its collections area had worsened a trend towards rising bad debts.

The company, which has been led by chief executive Bob Belan since April, also flagged a $46 million after-tax provision, mainly to cover the customer remediation costs, such as the cost to customers of replacing their driver’s licences. This provision does not include any possible costs the company could face from class actions, fines, or future upgrades to its systems.

All up, the company forecast a first-half statutory loss of $95 million to $105 million, and expected a statutory loss over the full year.

“Due to the forecast statutory after-tax loss, it is unlikely that Latitude will declare a dividend for the six months to June 30, 2023,” the company said.

Chief investment officer at Atlas Funds Management Hugh Dive said despite the costs from the cyberattack, he thought the more concerning aspect of Latitude’s update was the rise in bad debts. “What that’s telling me is that unsecured credit is in a bit of trouble,” Dive said.