Business
Preliminary results for the year ended 31 Decem...
Preliminary results for the year ended 31 Decem....
About this update from Osb Group Plc
[{"type":"text","content":"\n \n \n Preliminary results for the year ended 31 December 2022\n \n \n \n LEI: 213800ZBKL9BHSL2K459\n \n 16 March 2023\n \n \n \n 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 believe provide a more consistent basis for comparing the Group’s results between financial periods\n \n \n . Underlying results exclude exceptional items, integration costs and other acquisition-related items (see the reconciliation in the Financial review). \n \n \n OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings group, announces today its results for the year ended 31 December 2022.\n \n Financial and operational highlights\n \n \n Underlying profit before tax increased by 13% to a record £591.1m (2021: £522.2m) and statutory profit before tax increased by 14% to £531.5m (2021: £464.6m) primarily due to growth in the loan book, an improved net interest margin and net fair value gains on financial instruments\n Underlying and statutory net loan book increased by 12% to £23.5bn and £23.6bn, respectively (2021: £20.9bn and £21.1bn) supported by organic originations of £5.8bn, up 29% from £4.5bn in 2021\n Underlying net interest margin (NIM) of 303bps (2021: 282bps) and statutory NIM of 278bps (2021: 253bps) increased, benefitting from base rate rises \n Underlying cost to income ratio increased to 25% (2021: 24%) and 27% on a statutory basis (2021: 26%) with the benefit of higher fair value gains partially offsetting the impact of higher administrative expenses\n Underlying loan loss ratio of 14bps and statutory loan loss ratios of 13bps (2021: -2bps) reflected the worsening economic outlook, including the potential impact of higher cost of living and borrowing on affordability. Arrears remained stable with balances greater than three months at 1.1% (31 December 2021: 1.1%)\n Underlying return on equity was unchanged from prior year at 24% and statutory return on equity increased to 21% (2021: 20%) due to strong profitability\n Underlying basic earnings per share (EPS) of 99.6 pence (2021: 86.7 pence) and statutory basic EPS of 90.8 pence (2021: 76.0 pence) \n Capital remained strong with Common Equity Tier 1 ratio at 18.3% (2021: 19.6%) and tota...