Q1 Trading Update

Published: 08.05.2024

OSB GROUP PLC

Trading update

OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings group, today issues its trading update for the period from 1 January 2024 to date.

Highlights

Financial and operational performance in the first quarter of 2024 was stable and underlying1 net interest margin is on track to meet full year guidance

New originations of £1.0bn in the first three months of 2024 (Q1 2023: £1.2bn). Underlying1 and statutory net loans and advances increased by 1% in the first quarter to £26.0bn (31 December 2023: £25.7bn and £25.8bn, respectively)

Retail deposits grew by 4% to £23.1bn in the first quarter (31 December 2023: £22.1bn) and the Group has repaid £1.1bn of the Bank of England’s TFSME drawings in 2024 with £2.2bn of drawings outstanding

The Group’s three months plus arrears balances increased to 1.5% as at 31 March 2024, inside modelled expectation, largely due to the impact of higher cost of living and borrowing (31 December 2023: 1.4%)

In January, the Group issued an additional £400m of MREL qualifying debt securities and met its interim MREL requirement plus regulatory buffers of 22.5% of risk weighted assets, under the current standardised rules

The Group has repurchased £18.8m worth of shares under the £50m share repurchase programme2

Underlying excludes the fair value uplift to CCFS’ loan book on acquisition

As at market close on 7 May 2024

Andy Golding, CEO of OSB Group, said:

“I am pleased with the Group’s operational and financial performance for the first quarter of 2024.

Demand in our core Buy-to-Let and Residential sub-segments remains positive with high quality applications and completions supporting the growing net loan book and we are writing new business at attractive yields. Retail funds pricing remained stable through the quarter as we grew the savings book in line with our requirements.

Whilst market conditions remain dynamic, given the Group’s performance to date, we are on track to deliver the 2024 full year guidance for underlying net interest margin broadly flat to 2023, underlying net loan book growth of c.5% and the underlying cost to income ratio broadly flat to 2023.

The Group is well positioned to deliver attractive and sustainable returns across the cycle, with a strong and resilient business model, robust capital and liquidity position, secured loan book and proven risk management capabilities. I look to the future with confidence.”

OneSavings Bank (OSB)

Charter Court Financial Services Group (CCFS)

Important disclaimer

Non-IFRS performance measures