Osb Group Plc · LSE:OSB
Osb — OneSavings Bank — FY2015 Earnings Presentation
17 slides from Osb's earnings presentation, Mar 17, 2016
Slide 1: 2015 Preliminary Results
2015 Preliminary Results 17 March 2016 Specialist Personal Flexible
Slide 2: Performance highlights
Performance highlights Gross New Lending £1.8bn Loans and Advances £1.5bn £5.1bn 28% 26% £3.9bn Improved by + 20% 2% points + 31% 2014 2015 2014 2015 2014 2015 Cost : Income ratio Underlying PBT 28% £105.9m 26% £69.7m Improved by 2% points 2014 2015 +52% 2014 2015 Underlying Basic EPS 34.8p Underlyi
Slide 3: Delivering on our financial objectives 2014 - 2016
Delivering on our financial objectives 2014 - 20161 2015 result Funding / Liquidity strength Maintain loan to deposit ratio of <100%2 93% Cost discipline Cost:Income ratio of <35% 26% Capital strength CRD IV CET1 ratio >10% 11.6% Shareholder returns RoE of >25% 32%3 Dividend policy Pay-out ratio of
Slide 4: Key Financial Indicators
Key Financial Indicators 1 Improved underlying profitability1… 2 …driven by high-margin new lending3… 120 175 3.5% 3.1% 2.9% 3.0% Profit Before Tax (£m) 100 155 135 2.5% 80 2.1% 115 2.0% 60 106 95 170 1.5% 40 75 2 70 0.6% 125 1.0% 20 55 30 0.5% 35 71 0 (0.1%) (15)2 (11) 15 0.0% (20) 16 (5) -1 -0.5%
Slide 5: Income Statement
Income Statement 2015 vs 2014 £m 2015 2014 Variance % change 2015 vs. 2014 Net interest income 169.8 125.2 44.6 36% • Continued growth in net interest Other income / (expense) (7.3) (6.3) (1.0) 16% margin reflecting the positive impact of high margin new lending, the lack Total income 162.5 118.9 43
Slide 6: Balance Sheet
Balance Sheet 2015 vs 2014 £m 2015 2014 Variance % change 2015 vs. 2014 Liquid assets 748 926 (178) (19)% • 31% growth in loans & advances Net customer loans 5,135 3,919 1,216 31% through strong organic origination of o/w gross customer loans 5,162 3,945 1,217 31% £1.8bn and the purchase of a £260m
Slide 7: Segmental Results – BTL / SME
Segmental Results – BTL / SME • LTVs remain low at 66% (2014: 68%) with only 1% of loans by value with LTVs exceeding 90% (2014: 2%) • Average Interest rate coverage (ICR) for the Group was 159% during 2015 • Limited company applications for the Group rose from 21% in January to 40% by end 2015 1 Gr
Slide 8: Segmental Results – Residential
Segmental Results – Residential LTVs remain low at 56% (2014: 54%) with only 2% of loans by value with LTVs exceeding 90% (2014: 1%) 1 Gross loan book 2 Net interest income 70 60 2,000 1,750 50 Net Interest Income (£m) Gross Loan Book (£m) 1,500 40 1,250 69.0 1,000 2,007 30 57.1 1,765 1,763 750 42.3
Slide 9: Segmental Results – Personal Loans
Segmental Results – Personal Loans Run-off portfolio of performing unsecured consumer loans acquired July 2013 Gross loan book: £49m (Dec 2014: £117m) Net interest income: £5.6m (2014: £17.7m) Contribution to profit: £1.3m (2014: £10.4m) Loan loss charge as a % of average gross loans: 3.5% (2014: 3.
Slide 10: Our Business Model
Our Business Model Leading specialist lender in chosen sub-sectors Unique and cost One fair place efficient operating to save model 9
Slide 11: One specialist lender
One specialist lender 1 Leading specialist lender in chosen sub-sectors with a focus on bespoke underwriting • Our existing core businesses are performing well • Consistent loan book growth in Buy-to-Let/SME segment – organic new lending £1.5bn (2014: £1.2bn) • High quality residential mortgage segm
Slide 12: One specialist lender: growing our core and newer businesses
One specialist lender 2 Growing our core and newer businesses • Continued opportunities in core markets • Extended InterBay product range for professional investors • Targeted lending criteria to cement focus on long-term professional landlords – 69% of applications across the Group in H2 2015 were
Slide 13: One fair place to save
One fair place to save 3 One fair place to save, maintaining sustainable funding platform to support long-term growth • Stable retail funding franchise continues to grow, with retail deposits up by 24% to £5.4bn – 23,000 new savings customers – 32,500 new online service customers • Continued to deve
Slide 14: Unique and cost-efficient operating model
Unique and cost-efficient operating model 4 Unique and cost efficient operating model with outstanding customer experience • Our efficient operating platform is underpinned by continued investment in high quality, low cost, scalable Indian operations • Rebranded from EasiProcess to OSBIndia, reflect
Slide 15: Current market trends
Current market trends Growth in Buy-to-Let lending continuing despite regulatory headwinds, private rented sector market remains vital to UK housing market Significant opportunities in our commercial lines Mortgage broker market share continues to increase Wholesale markets open and FLS extended, ho
Slide 16: Summary and Outlook
Summary and Outlook 2015 was another year of strong performance: delivered on all financial objectives and produced an RoE of 32% Confident we will continue to achieve objectives We have successfully innovated in the commercial side of our Buy-to-Let/SME segment and will continue to do so We have en
Slide 17: Disclaimer
Disclaimer Important Message No undertaking, representation, warranty or other assurance, express or implied, is given or made by or on behalf of any member of OneSavings Bank plc ("OSB") and its subsidiaries (together, the "OSB Group") or any shareholders, directors, officers, partners, employees,