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OneSavings Bank doubles profits to £69.7m – results

  • 17/03/2015
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OneSavings Bank, the professional landlord and commercial mortgage lender, announced preliminary results today, which confirmed it more than doubled its profits to December 2014.

Loans and advances grew to £3.9bn up from £3bn the previous year, driven predominantly by £1.2bn in new business origination of professional buy to let and commercial mortgages.

This was an increase of 108% on 2013 new lending of £567m and included strong growth in buy-to-let particularly in London and the South East at risk-adjusted high returns.

OneSavings Bank’s group brands include Kent Reliance, InterBay Commercial and Prestige Finance and Heritable Development Finance which launched in  December 2013.

Andy Golding, CEO of OneSavings Bank, said: “I am delighted with our performance in 2014. We experienced strong growth in profitability across all of our business segments whilst maintaining tight control on costs and excellent levels of customer service. This has been a landmark year for OneSavings Bank and I would like to take the opportunity to thank all of our employees, customers and shareholders for their continued support.”

The bank, which launched in 2011, also bought a small portfolio of loans in October last year which was migrated into the Interbay platform.

However, its total buy to let/SME net loan book grew by 90% in 2014 to £2bn. This made an unadjusted contribution to profit of £44.6m in 2014, up 272% from £12m in 2013.

This excludes £0.8m of impairment losses in 2014, down from £3.1m in 2013 from the loan book inherited from Kent Reliance Building Society.

‘The overall Buy-to-Let market grew in 2014 and capacity withdrawn by lenders no longer active in this segment provided consistently strong opportunities to refinance portfolio landlords during the year,’ it said. 

The group grew retail deposits by 33% to £4.3bn, adding 27,000 new savings customers to the group during the year.

Golding said: “The recovery in the UK economy has led to an improvement in the housing market. Whilst there are some threats to growth, our view is that the UK economy will withstand the headwinds and that growth will continue. That said, these headwinds have pushed back expectations of interest rate rises and market expectations are for interest rates to increase from late 2015.”

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