OSB GROUP PLC - Trading Update for the nine months to 30 September 2025
Globenewswire·2025-11-06 07:00

Core Viewpoint - OSB Group PLC reported a trading update for the nine months ending 30 September 2025, indicating performance in line with expectations and on track to meet 2025 guidance [2] Financial Performance - The net loan book increased to £25,587 million, a growth of 1.8% from £25,126 million at the end of 2024 [3] - Total assets rose to £30,955 million, reflecting a 2.4% increase from £30,244 million [3] - Retail deposits grew by 6.0% to £25,259 million from £23,820 million [3] - The CET1 ratio decreased by 50 basis points to 15.8% from 16.3% [3] - Three months+ arrears remained stable at 1.7% [3] Loan Book and Originations - The net loan book growth was supported by a 19% increase in originations, totaling £3.4 billion compared to £2.8 billion in the same period of 2024 [4] - Excluding the sale of £130 million in second charge loans, the net loan book would have increased by 2.3% from 31 December 2024 [4][3] Strategic Developments - The Group is evolving its loan book mix, with higher-yielding sub-segments outpacing Buy-to-Let origination volumes [5] - The Group repaid its TFSME borrowings in full and undertook pre-funding for Q4 2025 [6] - A £578 million securitisation of owner-occupied prime mortgages was completed in September, achieving the best-ever pricing for this transaction [10] Credit Quality and Risk Management - Credit quality remained strong, with three months+ arrears reverting to 1.7% from 1.8% as of 30 June 2025 [6] - The Group's RWAs increased by 4.0% in the first nine months of 2025, optimizing the loan book towards higher-yielding assets [7] Future Outlook - The CEO expressed confidence in the Group's financial performance and strategic progress, indicating alignment with the full-year 2025 guidance for net interest margin, administrative expenses, loan book growth, and return on tangible equity [8] - The Group acknowledges a subdued Buy-to-Let mortgage market but remains focused on the strong fundamentals of the UK Private Rented Sector [12]