Q1 Trading Update
Q1 2025 performance in line with expectations; net loan book £25.2bn, deposits £23.8bn, on track for full year guidance.
vs expectations: in line
- Originations £1.1bn (prior £1.0bn)
- Net loan book £25.2bn (prior £25.1bn)
- Retail deposits £23.8bn (prior £23.8bn)
- Three months plus arrears 1.7% (prior 1.7%)
- TFSME balance outstanding £810m (prior £1.4bn)
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Published: 30.04.2025
OSB GROUP PLC
Q1 2025 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 2025 to date.
Highlights
OSBG’s first quarter performance was in line with expectations and the Group is on track to meet its full year guidance
Originations were £1.1bn (Q1 2024: £1.0bn) in the first quarter
The Group’s net loan book was £25.2bn (31 December 2024: £25.1bn) as we maintained pricing discipline and focus on higher-yielding specialist sub-segments of Commercial, Asset Finance, Bridging and Development Finance
Retail deposits remained broadly flat at £23.8bn (31 December 2024: £23.8bn) and TFSME balance outstanding was £810m as at 31 March 2025 (31 December 2024: £1.4bn)
Three months plus arrears balances were 1.7% as at 31 March 2025, unchanged from the end of 2024, in line with modelled expectations
The Group has repurchased £15.7m worth of shares under the £100m share repurchase programme1 which is due complete no later than 10 March 2026
As at market close on 29 April 2025
Andy Golding, CEO of OSB Group, said:
“I am pleased with the performance of our lending and savings franchises in the first quarter of 2025.
We continued to prioritise returns over growth when pricing new and retention mortgage products which led to a broadly flat net loan book compared to the end of 2024.
We saw growth in originations in more complex Buy-to-Let and our higher-yielding specialist sub-segments and retail deposit pricing remained in line with our assumptions with an attractive blended front book margin.
Retail deposits were broadly flat as the Group focused on optimising liquidity and utilised funds from the December securitisation to repay c.£600m of its TFSME balance. Since the end of the quarter, we have repaid a further c.£150m of this funding.
The transformation programme progressed well in the quarter with all new Kent Reliance fixed rate bonds now available on our new savings platform. I am proud that our focus on building and delivering excellent journeys for our customers was recognised in March by FS Tech award for Best Customer Service and Experience – Technology.
Given the Group’s performance to date, we are on track to deliver the 2025 guidance of low single digit net loan book growth, net interest margin of c.225bps, c.£270m of administrative expenses and low-teens RoTE.
The Board is cognisant of the geopolitical environment and continues to monitor its impact on the UK economy and the macroeconomic scenarios used in the Group’s IFRS 9 models.
The Group is well positioned to deliver on its guidance with attractive and sustainable returns for the shareholders and I look to the future with confidence.”
OneSavings Bank (OSB)
Charter Court Financial Services Group (CCFS)
Important disclaimer
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.