OSB GROUP PLC Preliminary Results

2025 Full year results

OSB Group PLC's Full year results for the year ended 31 December 2025 are available in full unedited text at: 2025 Full Year Results and on the Group’s corporate website https://www.osb.co.uk/investors/results-reports-presentations . A copy of the full year results has also been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism . This announcement is made in accordance with DTR 6.3.5R(1A).

OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings group, announces today its results for the year ended 31 December 2025.

Andy Golding, Group CEO, said:

“The Group delivered resilient financial performance in the first year of the transition period, which was in line with our 2025 guidance. We also made tangible progress against our strategy that we set out at the Investor update last year. The loan book diversification has been gaining momentum and in 2025, combined originations in our higher-yielding sub-segments grew by 53%. The Buy-to-Let gross loan book represented 68% of the Group’s total gross loan book, a reduction from 70% a year ago, on track with our 2029 target. Finally, many milestones were achieved in the transformation programme in the year. I am particularly pleased with the launch of our new lending platform, a new brand dedicated to Buy-to-Let borrowers: Rely as well as a successful migration of some of our existing savers onto the new savings platform. All this was achieved on time and to budget.

I am pleased that the Group’s MREL resolution strategy was reclassified to Transfer from Bail-in, which will bring benefits in the later stages of our Plan. With greater clarity over the Basel 3.1 rules and our confirmed MREL status and therefore our capital requirements, the Board set a new CET1 target for the Group of 13-13.5% post implementation of the Basel 3.1 rules.

The Board has recommended a final dividend per share of 24.1 pence (2024: 22.9 pence), which together with the interim dividend of 11.2 pence (2024: 10.7 pence), represents a total ordinary dividend per share of 35.3 pence for 2025, an increase of 5% from the prior year as guided. The Board is committed to returning excess capital to shareholders and has today announced a new £100m share repurchase programme to commence on 6 March 2026.

The previously communicated direction for 2026 has been refined as guidance as follows:

net loan book growth is now expected to be broadly similar to 2025 outcome,

net interest margin is expected to be circa 225bps, reflecting the same key drivers as in 2025: a continuation of lending back book dynamics; new business written at sustainable margins; and a gradual normalisation of the cost of retail funding from the current elevated levels,

administrative expenses are expected to be c.£280m1 with core costs increasing at no more than the rate of inflation and as we continue to invest in the transformation programme,

finally, we anticipate a low teens return on tangible equity and a dividend per share increasing by 5% in 2026.

Return on tangible equity remains our key focus. We continue to expect mid teens RoTE in 2027-28, increasing to the top end of mid teens in 2029 driven by the successful execution of our strategy, capital optimisation and the MREL qualifying debt securities reaching their respective call dates.

The Group is well-capitalised, with strong liquidity and a high-quality secured loan book. We are focused on making progress through the transition period to deliver on our medium-term aspirations, prioritising positive outcomes for our stakeholders and strong returns for our shareholders.”

Financial and operational highlights

Net loan book grew by 3.2% to £25.9bn as guided (31 December 2024: £25.1bn) supported by a 19% growth in originations to £4.7bn (2024: £4.0bn) with continued focus on returns and diversification into higher-yielding sub-segments

Net interest income and net interest margin (NIM)2 were £679.4m and 228bps, in line with guidance (2024: underlying3 £690.6m and 230bps, respectively). The reduction primarily related to more costly spreads to SONIA from new retail funding which more than offset more resilient back book performance and new business written at sustainable margin

Administrative expenses and cost to income ratio increased to £270.1m and 40.4% (2024: £258.1m and 38.7%, respectively) mainly due to further investment in the Group’s transformation programme. Core administrative expenses4 increased by 0.8% compared with the prior year

Loan loss ratio5 was 5bps (2024: (4)bps) and arrears balances of three months or more were stable at 1.7% (31 December 2024: 1.7%)

Profit before tax reduced to £382.5m (2024: £418.1m) primarily due to an impairment charge compared to an impairment credit in the prior year, an increase in fair value losses and higher administrative expenses

Retail deposits increased by 2% to £24.3bn (31 December 2024: £23.8bn). The Group repaid its TFSME borrowings in full on 10 September 2025

Return on tangible equity6 reduced to 13.7% (2024: 14.9%) due to lower profitability in the year

TNAV per share7 improved to 579 pence as at 31 December 2025 (31 December 2024: 544 pence) largely as a result of lower number of shares outstanding

Basic earnings per share8 (EPS) was 75.6 pence (2024: 77.6 pence)

The Common Equity Tier 1 capital ratio remained strong at 15.8% (31 December 2024: 16.3%)

Total dividend of 35.3 pence per share (2024: 33.6 pence) an increase of 5% as guided

Dividend details

The recommended final 2025 dividend of 24.1 pence per share, subject to approval at the AGM on 7 May 2026, will be paid on 13 May 2026.

The ordinary shares will be quoted ex-dividend on the London Stock Exchange on 2 April 2026 with the record date of eligibility for dividend payment of 7 April 2026.

Additional costs related to the new CEO transition and buyout are not included.

Net interest income as a percentage of a 13 point average of interest earning assets.

2025 statutory NIM is comparable with 2024 underlying NIM as both metrics exclude acquisition-related items, which were fully written off in 2024.

See the Appendix for definition and calculation of APMs.

Impairment losses as a percentage of a 13 point average of gross loans and advances.

Profit attributable to ordinary shareholders, which is profit after tax, and after deducting coupons on AT1 securities, gross of tax, as a percentage of a 13 point average of shareholders’ equity excluding average intangible assets and of AT1 securities.

Tangible net asset value per share is shareholders’ equity excluding intangible assets and AT1 securities as at the end of the year divided by the number of shares outstanding at the end of the year.

Profit attributable to ordinary shareholders, which is profit after tax, and after deducting coupons on AT1 securities, gross of tax, divided by the weighted average number of ordinary shares in issue.

Important disclaimer

This document should be read in conjunction with any other documents or announcements distributed by OSB GROUP PLC (OSBG) through the Regulatory News Service (RNS).

Nothing in this document is intended to be, or should be construed as, a profit forecast or estimate for any period.

In regard to any information provided by third parties, neither OSBG nor any of its directors, officers or employees explicitly or implicitly guarantees that such information is exact, up to date, accurate, comprehensive or complete. In no event shall OSBG be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for inaccuracies or errors in, or omission from, any third-party information contained herein. Moreover, in reproducing such information by any means, OSBG may introduce any changes it deems suitable, may omit partially or completely any aspect of the information from this document, and accepts no liability whatsoever for any resulting discrepancy.

Liability arising from anything in this document shall be governed by English law, and neither OSBG nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Nothing in this document shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

Certain figures contained in this document, including financial information, may have been subject to rounding adjustments and foreign exchange conversions. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this document may not conform exactly to the total figure given.

Non-IFRS performance measures

OSBG believes that any non-IFRS performance measures included in this document provide a more consistent basis for comparing the business' performance between financial periods, and provide more detail concerning the elements of performance which OSBG is most directly able to influence or which are relevant for an assessment of OSBG. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by the Board. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the Appendix section in the OSBG 2025 Full year results for further details, reconciliations and calculations of non-IFRS performance measures included in this document and the most directly comparable IFRS measures.