Business
Interim results for six months ended 30 June ...
OSB Group PLC's interim results for the six months ended 30 June 2025 showed resilient financial performance, in line with management expectations. Net loan book growth was 1.2% to £25.4 billion, supported by a 10% increase in originations to £2.1 billion. Net interest income decreased by 5% to £337.0 million, and the net interest margin (NIM) fell to 230 basis points (bps). Administrative expenses rose 4% to £131.4 million, resulting in a cost-to-income ratio of 40.3%. Profit before tax was £192.3 million, down 20% year-on-year. Return on tangible equity (RoTE) was 13.7%, and basic earnings per share (EPS) was 37.3 pence. Retail deposits increased by 3% to £24.6 billion, and the interim dividend was 11.2 pence per share, a 5% increase. The Common Equity Tier 1 capital ratio was 15.7%. The company reiterated its 2025 guidance of low single-digit net loan book growth, a NIM of approximately 225 bps, approximately £270 million in administrative expenses, and a low-teens RoTE. Key ratios are summarised below: | Ratio | H1 2025 | H1 2024 | Change vs H1 2024 | |--------------------------|-----------|-----------|-------------------| | Net Interest Margin (bps) | 230 | 237 | (7) | | Co...
About this update from Osb Group Plc
[{"type":"text","content":"\n\n \n \n\n Interim results for six months ended 30 June 2025\n\nOSB GROUP PLCInterim report for the six months ended 30 June 2025 LEI: 213800ZBKL9BHSL2K459 20 August 2025 OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings group, announces today its results for the six months ended 30 June 2025. Andy Golding, Group CEO, said: “The Group’s results for the first half of 2025 demonstrate resilient financial performance in line with management expectations in addition to strategic progress as we work our way through the two-year transition period. We continued to exercise cost and lending discipline and our focus on returns was reflected in a 13.7% return on tangible equity. Our transformation programme is on track and I am pleased with the favourable feedback received following the soft launch of our new lending platform and Rely brand for Buy-to-Let investors, both key steps in our strategic plan. We delivered 1.2% net loan book growth in the first half as we focused on loan book diversification. In line with the targeted expansion into higher yielding sub-segments where we have existing expertise, we saw strong growth in originations across Commercial, Asset finance, Residential development and Bridging. Given the performance in the first half of the year, today we reiterate our 2025 guidance of low single digit net loan book growth, NIM of c.225bps, c.£270m of administrative expenses and a low teens RoTE. The Group is well-capitalised, with strong liquidity and a high-quality secured loan book. We are focused on making progress through the transition period to deliver on our medium-term aspirations, prioritising positive outcomes for our stakeholders and strong returns for our shareholders.” Financial and operational highlights Net loan book grew by 1.2% to £25.4bn (31 December 2024: £25.1bn) supported by a 10% growth in originations to £2.1bn (H1 2024: £1.9bn) with continued focus on returns and diversification into higher yielding sub-segments Net interest income and net interest margin (NIM)1 were £337.0m and 230bps (H1 2024: £353.5m and 237bps, respectively). The reduction primarily reflected more costly spreads to SONIA as the savings book continued to recycle, partially offset by more resilient back book performance and an emerging benefit from higher yielding sub-segments. The Group completed a ...