Slide 1: 2019 interim results
PRIVATE AND CONFIDENTIAL 2019 interim results 21 August 2019
Slide 2: Another strong set of results for the first half of 2019
Another strong set of results for the first half of 2019 £9.0bn £9.9bn Gross organic lending £1,444m £1,635m Loans and advances Improved + 13% by 2% H1 18 H1 19 + 10% FY 18 H1 19 points Cost to income ratio 27% 28% Underlying PBT £91.8m £96.9m + 1pp + 6% H1 18 H1 19 H1 18 H1 19 29.0p 26% Underlying
Slide 3: Attractive return on equity driven by…
Attractive return on equity driven by… 1. Strong underlying profits… 2. with attractive NIM & high loan book growth… 120 3.24 3.01 2.78 Net interest income (£m) Underlying profit before tax (£m) 160 3.5 100 3 Net interest margin (%) 80 120 2.5 60 2 80 92 97 135 151 1.5 402 78 117 40 1 20 H1 2019 0.5
Slide 4: Strong profitability drives growth in shareholder value
Strong profitability drives growth in shareholder value H1 2019 H1 2018 Change £m £m £m % • Other expenses include £4.6m loss on Net interest income 151.0 135.2 15.8 12 unmatched mortgage pipeline swaps. This Other expenses (7.2) (2.1) (5.1) 243 unrealised loss will unwind over the life of Total inc
Slide 5: Strong growth whilst maintaining credit quality
Strong growth whilst maintaining credit quality H1 2019 FY 2018 Change £m £m £m % • Net loan book growth of 10% in the Lending first half supported by 13% growth in Net customer loans 9,862 8,983 879 10 organic origination to £1,635m and Provisions (33) (22) (11) 50 improved retention via our Choice
Slide 6: Segmental results – BTL/SME
Segmental results – BTL/SME • Average book LTV remains low at 72% (FY 2018: 70%) with only 0.7% of loans by value with LTVs exceeding 90% (FY 2018: 0.6%) 1. Gross loan book 2. Net interest income 9,000 Gross loan book (£m) Net interest income (£m) 7,500 120 6,000 80 4,500 7,389 8,159 120 3,000 6,516
Slide 7: Segmental results – BTL/SME sub-segments
Segmental results – BTL/SME sub-segments 1. Buy-to-Let 2. Semi-commercial/Commercial 800 Gross loan book (£m) 7,500 Gross loan book (£m) 6,000 600 4,500 400 3,000 6,518 7,100 725 2 200 548 1,500 0 0 FY 18 H1 19 FY 18 H1 19 • Average interest rate coverage (ICR) was 175% during H1 • Weighted average
Slide 8: Segmental results – Residential
Segmental results – Residential • Average book LTV remains low at 58% (FY 2018: 56%) with only 3% of loans by value with LTVs exceeding 90% (FY 2018: 3%) 1. Gross loan book 2. Net interest income 2,000 40 Net interest income (£m) Gross loan book (£m) 1,500 30 1,000 1,603 1,616 1,736 20 34 33 31 500
Slide 9: Segmental results – Residential sub-segments
Segmental results – Residential sub-segments 1. First charge mortgages 2. Second charge mortgages 1,500 500 Gross loan book (£m) Gross loan book (£m) 1,250 400 1,000 300 750 2 1,224 1,340 200 500 368 373 250 100 0 0 FY 18 H1 19 FY 18 H1 19 3. Funding lines 4. Summary 60 • First charge gross loan boo
Slide 10: Strong capital base
Strong capital base 18% 15.2% • Strong capital position continued in H1 15% 0.9% 1.3% 2019 despite loan book growth and impact 12% of exceptional transaction costs on 9% statutory profit 6% 13.0% • Pillar 2a requirement of 1.1% of risk 3% weighted assets 0% • We are pleased with the progress towards
Slide 11: Our award-winning lending franchise performed strongly
Our award-winning lending franchise performed strongly Organic lending up 13% Retention Net loan book growth 1,700 Improved by 2% Significant increase in Gross loan book (£m) 260 1,400 111 borrowers choosing new Growth 10% 132 products with our Choices points 1,100 1,333 1,375 retention scheme, 76%
Slide 12: Award-winning savings franchise and diversified funding
Award-winning savings franchise and diversified funding Kent Reliance savings franchise Funding platform Improved by 2% points £9.2bn We continue c. 30k Successfully re-entered the RMBS market in July 2019, £500m Retail deposits up to attract securitising £500m of 14% in the period new organically o
Slide 13: Summary and outlook
Summary and outlook The first half of 2019 was yet another period of strong growth: 13% increase in organic origination to £1.6bn Trading conditions in our core professional BTL market remain competitive but we continue to see opportunities in core segments Strong credit profile: low arrears and sen
Slide 14: Disclaimer
Disclaimer This document should be read in conjunction with the documents distributed by OneSavings Bank plc (‘OSB’) through the Regulatory News Service (‘RNS’). This document is not audited and contains certain forward-looking statements, beliefs or opinions, including statements with respect to th