Slide 1: Preliminary results 2024
Preliminary results 2024 1 OSB GROUP PLC | 2024 Preliminary results
Slide 2: 2024 highlights
2024 highlights Continued cost discipline Continued discipline Ongoing focus on RoE in lending to create capacity for investment and capital returns 2.5% Net loan book growtht 230bps Net interest margin’ (5)bps Loan loss ratio! 1. Underlying 2. Excludes December 2024 securtisation cand derecognition
Slide 3: Underlying results
Underlying results 2024 £m Net interest income 690.6 Net foir volue loss on financial (2.7) Loss on sale of financial instruments (2.4) Other operating income 47 3.9 0.8 21 Total income 690.2 707.8 (17.6) (2) Administrative expenses (257.4) (232.9) (24.5) (11) Provisions (2.7) (0.4) (2.3) n/m Impair
Slide 4: Strong, secured balance sheet
Strong, secured balance sheet 2024 2023 Change Lending £m £m £m % Statutory net loans and advances to 25,126 25,765 639 (2) Expected credit losses (127) (146) 19 13 Funding and liquidity Customer deposits 23,820 22,127 1,693 8 Debt securities in issue 1,018 819 199 24 MREL & Tier 2 qualifying debt 9
Slide 5: 2024 NIM waterfall
2024 NIM waterfall Ls] — — ocean 1 | c.225 1 bps I I I I I I December 2023 Lending Cost of MREL Other FY 2024 Fy 2025 Underlying margin retail funds issuance Underlying Guidance exit ratet Statutory * Underlying 2024 NIM was 43bps lower than the December 2023 exit rate: — Lending margin — mortgages
Slide 6: Cost discipline to create capacity for investment
Cost discipline to create capacity for investment Administrative expenses fm Annual investment in transformation £m 3% core cost 9.9 increase || 257.4 —— 45 a 2023 15. 20.4 6.8 — eons “ue : : r r r 1 "Capital expenditure = Operating expenditure 2023 Core Redundancy Bank Transformation 2024 + expendi
Slide 7: Impairment provisions
Impairment provisions Expected credit losses £m 3.3 2.7 = — 10.8 (86.2) ml (7.9) Fy 2023 Updated macro Model 3+ months Stage New Individually scenarios enhancements arrears migration lending assessed & PMA updates. provisions 6 other? As at 31 December 2024 Gross carrying amount (£m) Expected credit
Slide 8: Strong capital base
Strong capital base 210bps of organic capital generation Ht CETI ratio 27 0.5 | nee L | (0.6) (1.1) (0.4) 17.2% (0.9) 2023 Profit for Loan book Securitisation & 2024 Other 2024 Preexcess 2x £50m Buy back 2024 the period growth derecognition Dividend capital March & August & mix transaction distribut
Slide 9: 2024-2026 Transitional Action Plan underway
2024-2026 Transitional Action Plan underway Net loan book growth NIM Administrative expenses RoTE Distributions 9 OSB GROUP PLC | 202% Preliminary results 2025 Guidance 2026 Direction Low single digit Modestly higher than 2025 C.2.25% Similar levels to 2025 c.£270m Modestly higher than 2025 Low teen
Slide 10: Appendices
Appendices 10 OSB GROUP PLC | 2024 Preliminary results
Slide 11: Financial highlights
Financial highlights Originations Net loan book Net interest margin Cost to income ratio Loan loss ratio - a a a a a 2023 2024 2023 2024 2023 2024 2023 2023 2024 Return on equity Profit before tax Basic EPS CET1 ratio Group underlying 2024 (pence per share) 16% 16% £443m 16.3% Group underlying £426m
Slide 12: Attractive underlying fundamentals
Attractive underlying fundamentals 1. Profit before tax 2. Nil and NIM = 1 ' 500 € Gale 2.51% 2.30 a o —_——______, Pe 443 5 ZS 250 2 500 ~*~ > fe = 5 3 5 {0} ie} 2023 2024 2024 2023 2024 underlying RoE of 16% 3. Cost discipline and efficiency GE aS 4. Credit performance 50% 1.2% 7% 40% 33% : S 0.3%
Slide 13: Components of Group capital
Components of Group capital Capital resources and requirements as a percentage of RWAs!' 25.6% management ail 23.5% 22.0% 14.0% By requirement — By instrument. Capital & MREL resources End state MREL type type 31 Dec 23 31 Dec 24 requirement due July 2026 =Pillort mPillar2a CCB = CCyB mCET! =ATI =Ti
Slide 14: Sustainability
Sustainability In 2024, we furthered our commitment to helping customers, colleagues and communities prosper through deeper integration of ESG into our business operations Our approach to sustainability is built on three strategic pillars that enable us to advance on our Purpose and our ESG commitme
Slide 15: Strong statutory results
Strong statutory results Statutory P&L Reconcili tion of underlying to statutory PBT £m (24) 2024 2023 Change £m £m £m % Net interest income 666.4 658.6 7.8 1 Net fair value loss on financial instruments cr) (44) 29 66 Loss on sale of financial instruments RD 7 2.4) n/m Other operating income 47 3.9
Slide 16: OSB segment result
OSB segment result BTL/SME 1. Gross loan book & € 10000 ou ee 12,175 8% 5000 = oO 6a 0 2023 RWA as % of net loans 51% 3. Contribution to profit? 400 eo SE 300 Be 200 22 100 8 o 62 0 2023 Average book LTV! increased to 68% (2023: 67%) with 4.5% of loans by value with LTVs exceeding 90% (2023: 4.0%).
Slide 17: OSB segment results
OSB segment results Residential 1. Gross loan book lt; 2,000 8& 3 ~ 1,000 58 Oo 2023 RWA as % of net loans 46% 2024 46% 3. Contribution to profit? Contribution to profit (Em) 80 60 40 7 20 ) 2023 2024 Average book LTV! remained at 48% while 1.5% of loans by value had LTVs exceeding 90% (2023: 48% and
Slide 18: OSB segment results
OSB segment results BTL/SME sub-segments 1. Buy to let - = = ie} 2023 2024 The weighted average interest coverage ratio (ICR) was 186% during 2024 (2023: 176%) Gross loan book (£m) @ fo) fo} o 3. Residential development HE Loans [0 Undrawn commitments Development finance to small and medium- “oo | 1
Slide 19: CCFS segment results
CCFS segment results BTL sub-segment 1. Gross loan book Gross loan book (£m) RWA 8,000 4,000 7,922 te) 2023 as % of net loans 40% 3. Contribution to profit! 200 SE ge Be 100 =e a fod og 0 2023 1. Total income less impairment losses 19 OSB GROUP PLC | 2024 Preliminary results 6,367 2024 42% 197 2024
Slide 20: CCFS segment results
CCFS segment results Residential sub-segment 1. Gross loan book 3,000 H & 2,000 88 1,000 68 4 2023 2024 RWA as % of net loans 42% 45% 3. Contribution to profit! 100 ou a S Contribution to profit (£m) N a te) 2023 2024 1. Total income less impairment losses 20 OSB GROUP PLC | 2024 Preliminary results
Slide 21: CCFS segment results
CCFS segment results Bridging 1. Gross loan book Gross loan book (£m) 400 2023 2024 RWA as % of net loans 50% 3. Contribution to profit! Contribution ‘to profit (Em) 15 10 2023 1. Total income less impairment losses 2 OSB GROUP PLC | 2024 Preliminary results 2024 Short-term bridging originations inc
Slide 22: Updated forward-looking macroeconomic scenarios
Updated forward-looking macroeconomic scenarios Forecast macroeconomic variables over a five-year period Scenario Probability Economic measure Year end Year end Year end Year end Year end weighting % 2024 2025 2026 2027 2028 GDP 0.7 14 1.7 1.8 17 Unemployment 4.3 Gh 4.3 Pal 4.0 Base case 4O House pr
Slide 23: Important disclaimer
Important disclaimer This document should be read in conjunction with any other documents or announcements distributed by OSB GROUPPLC (OSBG) through the RegulatoryNews Service (RNS). This document is not audited and contains certain forward-looking statements with respect to the business, strategy