OSB Group ‘on track’ for 10 per cent net loan book growth by year-end

  • 11/11/2021
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OSB Group ‘on track’ for 10 per cent net loan book growth by year-end
OSB Group delivered a “strong financial and operating performance” in the three months to September and is on track to grow its net loan book by close to 10 per cent at the end of the year.


In a trading update, OSB Group, which also owns Charter Court Financial Services Group, reported £1.1bn in new mortgage lending for the period, which is up by nearly half compared to the same period last year.

Its underlying net loan balance has increased by eight per cent in the first nine months of the year to £20.6bn.

The group has remained on track to deliver close to 10 per cent underlying net loan book growth this year, along with an underlying net interest margin of close to 270 basis points.

OSB Group’s chief executive Andy Golding said: “I am delighted with the performance of the group in the period, which further demonstrates the resilience of our business model and strong risk management capabilities.

“Our lending and savings franchises performed well, and whilst we continue to control lending in our more cyclical businesses, we are seeing good demand in our buy-to-let and residential segments, building the pipeline for 2022.”

He added that the group continued to review its capital position following changes to capital rules under Basel 3.1, which could change minimum required capital asked for by regulators from banks.

Golding said in October the group had returned its legacy AT1 securities and issued £150m of AT1 securities, which showed the company’s “attractiveness and its excellent capital markets capabilities”.

AT1 bonds are securities which absorb losses if a financial institution’s capital falls below a supervisor-determined level.

He added: “We remain mindful of uncertainty in the outlook for the UK economy, however demand in housing and rental markets remains strong and the group is well positioned to continue to deliver attractive and sustainable returns for shareholders across the cycle.”

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