OSB Group PLC

Latest Results (15.04.2026):

OSB Group PLC — full year results for the year ended 31 December 2025: the Group delivered results in line with guidance, with net loan book up 3.2% to £25.9bn and originations of £4.7bn (+19%). Net interest income was £679.4m (NIM 228bps), profit before tax fell to £382.5m (2024: £418.1m) driven by an impairment charge, higher fair value losses and increased admin costs, and return on tangible equity was 13.7%. The Board proposes a final dividend of 24.1p (total 35.3p, +5%) and announced a new £100m share repurchase programme. (Full year 2025, year ended 31 December 2025.)

Key financials

Net interest income £679.4m; NIM 228bps. Profit before tax £382.5m (down 9%); basic EPS 75.6p (2024: 77.6p). Net loan book £25.9bn (+3.2%). Originations £4.71bn (+19%). TNAV per share 579p (+6%).

Capital, liquidity and solvency

CET1 ratio 15.8% (31 Dec 2025). Group LCR 203% (well above regulatory minima). Risk-weighted assets £12.54bn (+5%). Board set a post‑Basel 3.1 CET1 target of 13–13.5%.

Dividends and shareholder returns

Recommended final dividend 24.1p (subject to AGM approval) giving total ordinary dividend 35.3p for 2025 (+5%). New £100m share repurchase programme to commence 6 March 2026.

Profit drivers and one‑offs

Profit fell mainly due to a £13.0m impairment charge (vs a credit in 2024), a net fair value loss on financial instruments of £22.1m, and higher administrative expenses (£270.1m). These were partly offset by increased net interest income and a gain on sale of a second‑charge mortgage portfolio.

Asset quality

Loan loss ratio 5bps (2024: (4)bps). Arrears (≥3 months) stable at 1.7%. Write‑offs and individually assessed provisions contributed to the 2025 impairment charge, while some model and stage releases partly offset it.

Portfolio mix and lending progress

Buy‑to‑Let gross loans £17.69bn (68% of gross book, down from 70%). Higher‑yielding sub‑segments (Commercial, Asset Finance, Bridging, Residential development) originations up 53%, supporting diversification. OSB launched new lending platform and Rely brand for Buy‑to‑Let.

Funding and margin dynamics

Retail deposits £24.25bn (+2%) remained primary funding. NIM was impacted by higher spreads to SONIA from new retail funding; NIM guidance for 2026 is circa 225bps. The Group repaid TFSME drawings and increased Indexed Long‑Term Repo use (c. £1.51bn at year end).

Costs and transformation

Administrative expenses £270.1m (+5%), driven by transformation investment; core admin costs rose only 0.8%. Progress reported on savings platform migration, product launches and automation (faster broker journeys and product repricing).

Outlook and guidance

2026 guidance: net loan book growth broadly similar to 2025, NIM ~225bps, administrative expenses c.£280m, low‑teens RoTE and a 5% increase in dividend per share. Medium‑term aspiration: mid‑teens RoTE in 2027–28, rising toward top end of mid‑teens by 2029.