OSB Q1 performance 'stable', reiterates FY guidance

OSB said new originations of £1.0bn in the first three months of 2024 were down slightly from the prior year's £1.2bn figure, while underlying and statutory net loans and advances increased by 1% to £26.0bn.

Retail deposits grew by 4% to £23.1bn and the group also noted it had repaid £1.1bn of the Bank of England's TFSME drawings in 2024, with £2.2bn of drawings outstanding.

OSB's three months plus arrears balances increased to 1.5% as at 31 March, inside modelled expectation, largely due to the impact of higher cost of living and borrowing.

Chief executive Andy Golding said: "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. Retail funds pricing remained stable through the quarter as we grew the savings book in line with our requirements.

"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 circa 5% and the underlying cost to income ratio broadly flat to 2023."

As of 0915 BST, OSB shares were up 4.83% at 449.73p.

Reporting by Iain Gilbert at Sharecast.com