TIDMOSB
LEI: 213800ZBKL9BHSL2K459
OSB GROUP PLC: Trading update
Published: 11.11.2021
OSB GROUP PLC
Trading update
OSB GROUP PLC (OSBG or the Group), the specialist lending and
retail savings group, today issues its trading update for the
period from 1 July 2021 to date.
Highlights
-- The Group delivered strong financial and operating performance in the
three months to 30 September 2021
-- Organic originations were GBP1.1bn in the three months to 30 September
2021, up 46% from GBP0.7bn in the equivalent period in 2020
-- Underlying1 and statutory net loans increased by 8% in the nine months to
30 September 2021, to GBP20.6bn and GBP20.8bn respectively (31 December
2020: GBP19.0bn and GBP19.2bn)
-- The Group updated the forward-looking macroeconomic scenarios used in its
IFRS 9 models leading to a further impairment provisions release in the
period. Three months plus arrears balances remained broadly stable
-- The Group remains on track to deliver c.10% underlying1 net loan
book growth and underlying1 NIM of c.270bp in 2021. The full year
underlying1 cost to income ratio is now expected to be broadly
flat to the first half
1. Underlying refers to results which exclude exceptional items,
integration costs and other acquisition-related items arising from
the Combination with CCFS
Andy Golding, CEO of OSB GROUP PLC, 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. We updated the forward-looking
macroeconomic scenarios used in our IFRS 9 models to reflect the
improved economic outlook, which together with the broadly stable
credit performance of our loan book led to a further provisions
release in the period.
We continue to review our capital position as we await more
clarity on how the UK will adopt the capital rules under Basel 3.1.
In October, the Group took further steps to optimise its capital
stack by retiring its legacy AT1 securities and issuing GBP150m of
AT1 securities from the holding company at a coupon of 6%, further
demonstrating the Group's attractiveness and its excellent capital
markets capabilities.
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."
Enquiries:
OSB GROUP PLC
Alastair Pate, Investor Relations t: 01634 838 973
Brunswick Group
Robin Wrench / Simone Selzer t: 020 7404 5959
About OSB GROUP PLC
OneSavings Bank plc (OSB) began trading as a bank on 1 February
2011 and was admitted to the main market of the London Stock
Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in
June 2015. On 4 October 2019, OSB acquired Charter Court Financial
Services Group plc (CCFS) and its subsidiary businesses. On 30
November 2020, OSB GROUP PLC became the listed entity and holding
company for the OSB Group. The Group provides specialist lending
and retail savings and is authorised by the Prudential Regulation
Authority, part of the Bank of England, and regulated by the
Financial Conduct Authority and Prudential Regulation Authority.
The Group reports under two segments, OneSavings Bank and Charter
Court Financial Services.
OneSavings Bank (OSB)
OSB primarily targets market sub-sectors that offer high growth
potential and attractive risk-adjusted returns in which it can take
a leading position and where it has established expertise,
platforms and capabilities. These include private rented sector
Buy-to-Let, commercial and semi-commercial mortgages, residential
development finance, bespoke and specialist residential lending,
secured funding lines and asset finance.
OSB originates mortgages organically via specialist brokers and
independent financial advisers through its specialist brands
including Kent Reliance for Intermediaries and InterBay Commercial.
It is differentiated through its use of highly skilled, bespoke
underwriting and efficient operating model.
OSB is predominantly funded by retail savings originated through
the long-established Kent Reliance name, which includes online and
postal channels as well as a network of branches in the South East
of England. Diversification of funding is currently provided by
securitisation programmes and the Bank of England funding schemes,
including the Term Funding Scheme and the Term Funding Scheme for
SMEs.
Charter Court Financial Services Group (CCFS)
CCFS focuses on providing Buy-to-Let and specialist residential
mortgages, mortgage servicing, administration and retail savings
products. It operates through its brands: Precise Mortgages and
Charter Savings Bank.
It is differentiated through risk management expertise,
best-of-breed automated technology and systems, efficient
processing, strong credit and collateral risk control and speed of
product development and innovation. These factors have enabled
strong balance sheet growth whilst maintaining high credit quality
mortgage assets.
CCFS is predominantly funded by retail savings originated
through its Charter Savings Bank brand. Diversification of funding
is provided by securitisation programmes and the Bank of England
funding schemes, including the Term Funding Scheme and the Term
Funding Scheme for SMEs.
Important disclaimer
This document should be read in conjunction with the documents
distributed by OSB GROUP PLC (OSBG) through the Regulatory News
Service (RNS). This document is not audited and contains certain
forward-looking statements with respect to the business, strategy
and plans of OSBG, its current goals, beliefs, intentions,
strategies and expectations relating to its future financial
condition, performance and results. Such forward-looking statements
include, without limitation, those preceded by, followed by or that
include the words 'targets', 'believes', 'estimates', 'expects',
'aims', 'intends', 'will', 'may', 'anticipates', 'projects',
'plans', 'forecasts', 'outlook', 'likely', 'guidance', 'trends',
'future', 'would', 'could', 'should' or similar expressions or
negatives thereof but are not the exclusive means of identifying
such statements. Statements that are not historical facts,
including statements about OSBG's, its directors' and/or
management's beliefs and expectations, are forward-looking
statements. By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend upon
circumstances that may or may not occur in the future that could
cause actual results or events to differ materially from those
expressed or implied by the forward-looking statements. Factors
that could cause actual business, strategy, plans and/or results
(including but not limited to the payment of dividends) to differ
materially from the plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements made by
OSBG or on its behalf include, but are not limited to: general
economic and business conditions in the UK and internationally;
market related trends and developments; fluctuations in exchange
rates, stock markets, inflation, deflation, interest rates and
currencies; policies of the Bank of England, the European Central
Bank and other G8 central banks; the ability to access sufficient
sources of capital, liquidity and funding when required; changes to
OSBG's credit ratings; the ability to derive cost savings; changing
demographic developments, and changing customer behaviour,
including consumer spending, saving and borrowing habits; changes
in customer preferences; changes to borrower or counterparty credit
quality; instability in the global financial markets, including
Eurozone instability, the potential for countries to exit the
European Union (the EU) or the Eurozone, and the impact of any
sovereign credit rating downgrade or other sovereign financial
issues; technological changes and risks to cyber security; natural
and other disasters, adverse weather and similar contingencies
outside OSBG's control; inadequate or failed internal or external
processes, people and systems; terrorist acts and other acts of war
or hostility and responses to those acts; geopolitical events ; the
impact of outbreaks, epidemics and pandemics, such as the Covid-19
pandemic and ongoing challenges and uncertainties posed by the
Covid-19 pandemic for businesses and governments around the world;
changes in laws, regulations, taxation, accounting standards or
practices, including as a result of the UK's exit from the EU;
regulatory capital or liquidity requirements and similar
contingencies outside OSBG's control; the policies and actions of
governmental or regulatory authorities in the UK, the EU or
elsewhere including the implementation and interpretation of key
legislation and regulation; the ability to attract and retain
senior management and other employees; the extent of any future
impairment charges or write-downs caused by, but not limited to,
depressed asset valuations, market disruptions and illiquid
markets; market relating trends and developments; exposure to
regulatory scrutiny, legal proceedings, regulatory investigations
or complaints; changes in competition and pricing environments; the
inability to hedge certain risks economically; the adequacy of loss
reserves; the actions of competitors, including non-bank financial
services and lending companies; and the success of OSBG in managing
the risks of the foregoing.
Accordingly, no reliance may be placed on any forward-looking
statement. Neither OSBG, nor any of its directors, officers or
employees, provides any representation, warranty or assurance that
any of these statements or forecasts will come to pass or that any
forecast results will be achieved. Any forward-looking statements
made in this document speak only as of the date they are made and
it should not be assumed that they have been revised or updated in
the light of new information of future events. Except as required
by the Prudential Regulation Authority, the Financial Conduct
Authority, the London Stock Exchange PLC or applicable law, OSBG
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained in this document to reflect any change in OSBG's
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
For additional information on possible risks to OSBG's business,
please see the Risk review section in the OSBG 2020 Annual Report
and Accounts. Copies of this are available at www.osb.co.uk and on
request from OSBG.
Nothing in this document and any subsequent discussion
constitutes or forms part of a public offer under any applicable
law or an offer to purchase or sell any securities or financial
instruments. Nor does it constitute advice or a recommendation with
respect to such securities or financial instruments, or any
invitation or inducement to engage in investment activity under
section 21 of the Financial Services and Markets Act 2000. Past
performance cannot be relied on as a guide to future performance.
Nothing in this document is intended to be, or should be construed
as, a profit forecast or estimate for any period.
Liability arising from anything in this document shall be
governed by English law, and neither the Company nor any of its
affiliates, advisors or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever
arising from any use of this document or its contents or otherwise
arising in connection with this document. Nothing in this document
shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.
Certain figures contained in this document, including financial
information, may have been subject to rounding adjustments and
foreign exchange conversions. Accordingly, in certain instances,
the sum or percentage change of the numbers contained in this
document may not conform exactly to the total figure given.
Non-IFRS performance measures
OSB GROUP PLC believes that the non-IFRS performance measures
included in this document provide a more consistent basis for
comparing the business' performance between financial periods, and
provide more detail concerning the elements of performance which
the Group is most directly able to influence or are relevant for an
assessment of the Group. They also reflect an important aspect of
the way in which operating targets are defined and performance is
monitored by the Board. However, any non-IFRS performance measures
in this document are not a substitute for IFRS measures and readers
should consider the IFRS measures as well. For further details,
refer to Alternative performance measures section in the OSBG 2020
Annual Report and Accounts. Copies of this are available at
www.osb.co.uk and on request from OSBG.
(END) Dow Jones Newswires
November 11, 2021 02:00 ET (07:00 GMT)
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