OSB Group PLC

Latest Results (12.10.2025):

OSB Group PLC reported resilient financial performance for the first half of 2025, aligning with management expectations and demonstrating strategic progress during the two-year transition period. The company maintained a strong focus on cost and lending discipline, achieving a 13.7% return on tangible equity and delivering steady growth in its loan book through diversification into higher-yielding segments.

Net Loan Book Growth

The net loan book increased by 1.2% to £25.4 billion, supported by originations of £2.1 billion. This growth reflects OSB Group’s strategic focus on diversifying into higher-yielding sub-segments, including Commercial, Asset Finance, Residential Development, and Bridging.

Net Interest Margin Decline

Net interest margin (NIM) decreased to 230 basis points from 237 basis points in the previous period. The reduction was primarily due to more costly spreads to SONIA as the savings book continued to recycle, partially offset by resilient back book performance and benefits from higher-yielding segments.

Increase in Administrative Expenses

Administrative expenses rose by 4% to £131.4 million, driven by planned investments in the Group’s transformation programme. The cost to income ratio also increased to 40.3%, reflecting higher administrative costs and lower total income.

Profit Before Tax Decline

Profit before tax decreased by 20% to £192.3 million, primarily due to lower net interest income and a fair value loss on financial instruments compared to a gain in the prior period.

Return on Tangible Equity

The return on tangible equity stood at 13.7%, down from 17.4% in the prior period. This decrease was largely due to lower profit after tax.

Growth in Retail Deposits

Retail deposits grew by 3% to £24.6 billion, offsetting £730 million of TFSME repayments during the period. This increase underscores the Group’s strong liquidity position.

Interim Dividend Increase

The interim dividend was raised by 5% to 11.2 pence per share, in line with the Group’s dividend policy. This represents one-third of the total 2024 ordinary dividend, reflecting confidence in the Group’s ongoing performance.