Business
OSB GROUP PLC - Interim Report
OSB GROUP PLC - Interim Report.
About this update from Osb Group Plc
[{"type":"text","content":"\n\n \n \n\n OSB GROUP PLC - Interim Report\n\nLEI: 213800ZBKL9BHSL2K459 15 August 2024 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION OSB GROUP PLCInterim report for the six months ended 30 June 2024 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 2024. Following the Combination with Charter Court Financial Services Group plc (CCFS) on 4 October 2019, this press release includes results on an underlying basis, in addition to the statutory basis, which Management believes provide a more consistent basis for comparing the Group’s results between financial periods. Underlying results exclude acquisition-related items (see the reconciliation in the Financial review). Financial and operational highlights Underlying profit before tax1 increased to £249.9m (H1 2023: £116.6m) and statutory profit before tax was £241.3m (H1 2023: £76.7m) primarily due to non-recurrence of the H1 2023 adverse EIR adjustment partially offset by lower prevailing spreads from mortgages and deposits and an impairment credit compared to a loss in the prior periodUnderlying return on equity2 increased to 18% (H1 2023: 8%) and statutory return on equity was 17% (H1 2023: 5%)Underlying and statutory net loan book grew by 1.5% and 1.4% to £26.1bn in the period (FY 2023: £25.7bn and £25.8bn, respectively) and originations were £1.9bn (H1 2023: £2.3bn) as the Group maintained pricing discipline and a focus on returnsUnderlying and statutory net interest margin (NIM)3 increased to 243bps and 237bps (H1 2023: 203bps and 171bps, respectively) largely due to non-recurrence of the adverse EIR adjustment partially offset by maturing fixed term mortgages redeeming or switching onto lower prevailing spreads, continued recycling of the fixed rate deposit book and MREL issuanceUnderlying and statutory cost to income ratios4 improved to 34% and 35% (H1 2023: 40% and 47%, respectively)Underlying and statutory loan loss ratios5 were (4)bps (H1 2023: 37bps) due to updated macroeconomic scenarios, particularly house price improvement. Arrears balances greater than three months increased to 1.6% (31 December 2023: 1.4%)Basic earnings per share6 were 46.0p and 44.4p on an underlying and statutory basis (H1 2023: 19.5p and 12.8p, respectively)The Common Equity Tier 1 capital ratio, which ...