According to OSB Group’s latest financial results, underlying and statutory net loans and advances rose by 1% in Q1 this year to £26bn. This compares to £25.7bn and £25.8bn respectively at year end.
The report found that its three months of arrears balances grew to 1.5%, which it said was “inside modelled expectation[s]”. The arrears figure at year end was 1.4%.
The lending group attributed the rise in arrears to the “impact of higher cost of living and borrowing”.
OSB Group said that its financial and operational performance in Q1 2024 were “stable” and underlying net interest margin (NIM) was “on track to meet full-year guidance”, as at market close on 7 May 2024.
Andy Golding (pictured), 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 [BTL] 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.”
He continued: “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.”
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