Specialist lending group remains on track for the year's financial targets
Specialist lender OSB Group has delivered a stable financial and operational performance for the first quarter of 2024, with its underlying net interest margin on track to meet full-year expectations.
During the first three months of the year, the group achieved new originations totalling £1 billion, down from £1.2 billion in the same period last year. Its net loans and advances saw a marginal increase of 1% from the end of 2023, reaching £26 billion.
The group also highlighted a 4% growth in retail deposits, which amounted to £23.1 billion by the end of the quarter. It has additionally repaid £1.1 billion of the Bank of England’s Term Funding Scheme for SMEs (TFSME) drawings in 2024, with £2.2 billion still outstanding.
Arrears balances of more than three months have slightly increased to 1.5%, which the company attributes to the rising cost-of-living and borrowing rates. The company said the figure remains within its modelled expectations.
“I am pleased with the group’s operational and financial performance for the first quarter of 2024,” Andy Golding (pictured), chief executive of OSB Group, said on the release of the trading update. “Demand in our core buy-to-let 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.
“While 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 around 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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