Osb Group Plc · LSE:OSB
Osb — OneSavings Bank — H1 2015 Earnings Presentation
12 slides from Osb's earnings presentation, Aug 26, 2015
Slide 1: Compelling combination of sustainable growth and returns
Compelling combination of sustainable growth and returns H1 2015 Results 26 August 2015 Specialist Personal Flexible
Slide 2: Performance highlights
Performance highlights Loans & Advances Cost : Income ratio £4.6bn 29% £3.9bn Improved by + 17% 26% 3% points FY 14 H1 15 H1 14 H1 15 Underlying PBT Interim Dividend £48m £30m + 60% 2.0 pence per share H1 14 H1 15 Fully-loaded CET1 Ratio 11.4% Underlying RoE 11.0% 30% 31% 25% Robust capital +6% poin
Slide 3: Delivering on our Financial objectives 2014 - 2016
Delivering on our Financial objectives 2014 - 2016 H1 2015 Result Funding / Liquidity Strength Maintain loan to deposit ratio of <100%1 99% Cost Discipline Cost / income ratio of <35% 26% Capital Strength CRD IV CET1 ratio >10% 11% Shareholder Returns Underlying RoE of >25% 31% Dividend Policy2 Pay-
Slide 4: Key Financial Indicators
Key Financial Indicators 1 Improved Underlying Profitability… 2 …Driven by High-Margin New Lending… 60% increase 3.07 3.05 2.73 2.82 1.61 £48m 4.6 £40m 3.9 3.0 3.4 £30m 2.4 H1 13 H2 13 H1 14 H2 14 H1 15 H1 14 H2 14 H1 15 H1 2015 Net interest margin (%) Net loans & advances (£bn) Underlying RoE of 31
Slide 5: Income growth drives underlying profit up 60%
Income growth drives underlying profit up 60% Change £m H1 2014 H1 2015 £m % Net interest income1 55.0 78.8 23.8 43 • 60% increase in Other income / (expense) (2.5) (3.3) (0.8) (32) underlying profitability 1 primarily driven by loan book Total income 52.5 75.5 23.0 43 and margin growth Operating ex
Slide 6: Significant loan growth, robust capital
Significant loan growth, robust capital Change £m FY 2014 H1 2015 £m % • Loan book growth of Lending 17% from strong organic Net customer loans 3,919 4,598 679 17 origination and £260m portfolio purchase o/w gross customer loans 3,945 4,627 682 17 o/w provisions (26) (29) (3) (12) • Loan growth fund
Slide 7: BTL / SME organic lending growth of 24%
BTL / SME organic lending growth of 24% 1 Gross Loan Book (£m) 2 Net Interest Income (£m) 48% 47% 5.34% 5.76% 2,549 41.1 2,065 19.0 YE 14 H1 15 H1 14 H1 15 RWA as a % of net loans Gross asset yield1 0.37% 0.24% 36.7 16.9 H1 14 H1 15 H1 14 H1 15 3 Contribution to Profit (£m) 4 Loan Loss Charge as % o
Slide 8: Residential growth through portfolio acquisition
Residential growth through portfolio acquisition 1 Gross Loan Book (£m) 2 Net Interest Income (£m) 42% 44% 5.86% 5.95% 1,763 1,995 32.8 26.5 YE 14 H1 15 H1 14 H1 15 RWA as a % of net loans Gross asset yield1 0.17% 30.3 21.6 0.02% H1 14 H1 15 H1 14 H1 15 3 Contribution to Profit (£m) 4 Loan Loss Char
Slide 9: One specialist lender
One specialist lender 1 Growth 2 Product Innovation Gross new organic lending £m 1000 800 launched an extended range of innovative refurbishment products for professional Buy- 600 Resi to-Let landlords 400 BTL/SME 200 0 developed and launched second charge H2 13 H1 14 H2 14 H1 15 Buy-to-Let loans to
Slide 10: One fair place to save
One fair place to save 1 Growth 2 Retention Our stable retail funding franchise continues to Our targeted Choices retention programme grow, ensuring long term, stable funding continues to deliver certainty to support our funding requirements with exceptionally strong Retail deposits up retention for
Slide 11: Summary and outlook
Summary and outlook 1 Responding to changing regulation 2 Bank corporation tax surcharge BTL tax changes have not impacted OSB’s target market Seen as unfair by many Professional landlords seek capital gain not income At odds with verbal support for challengers Supply and demand supports the market
Slide 12: 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,