Slide 1: H1 2026 results
H1 2026 results 6 August 2026 OSB GROUP PLC |
Slide 2: Andy Golding, Chief Executive Officer
Andy Golding Chief Executive Officer OSB GROUP PLC |
Slide 3: Resilient first half performance
Resilient first half performance Strategic progress in H1’26 Funding • In March 2025 we set out • Launched a new Limited access savings account a Plan to remain #1 • Completed a £549m securitisation of Buy - to- specialist lender with Let mortgages improving RoTE • Migrated c.130k accounts to new sa
Slide 4: H1'26 financial highlights
H1’26 financial highlights Cost discipline Disciplined Focus on RoTE to create capacity for lending and capital returns investment 1.3% Net loan book growth (0.4)% 13.3% 15.2% H1’25: 1.2% Reduction in core RoTE CET1 H1’25: 13.7% FY’25: 15.8% administrative expenses 68% H1’25: 0.4% Buy - to - Let as
Slide 5: Continue to target longer term portfolio mix shift
Continue to target longer term portfolio mix shift 1 Originations 1 Gross loans June 2026 H1’26 Dec’25 FY’25 +1.3% +10% Sub - segments: Net loan book growth Originations vs Dec’25 vs H1’25 68% 44% 1 Buy - to- Let 68% 41% Buy -to-Let enhanced by the launch of the Specialist 19% 17% 2 residential Rely
Slide 6: Transformation programme on track and delivering benefits
Transformation programme on track and delivering benefits Launched new savings platform in October 2024 and new lending platform with BTL mortgages in November 2025 Benefitting from 3.5 years of investment Momentum continues 1. Nimble pricing to prioritise returns 1 2. Enhanced customer experience S
Slide 7: Future proofing with AI
Future proofing with AI AI is being developed, governed and progressively scaled across the Group. Current examples include: Navigates complex credit Launched Broker support policy for faster , What we are scaling next? more consistent responses July 2026 Contact centre Real - time transcription c.3
Slide 8: Increased macroeconomic uncertainty with elevated retail deposits costs
Increased macroeconomic uncertainty with elevated retail deposits costs Spreads implied by market pricing 1 1 year bond swap spread - Market 1 H1’26 0.8 % Jan Feb Mar Apr May Jun 5.0% 0.6 % 1 year 0.4 % product 4.5% rate 0.2 % SONIA +/ - - 4.0% 1 year (0.2)% swap (0.4)% (0.6)% 1 year Bond 1 Year ISA
Slide 9: Path to our 2029 RoTE aspiration: confident on longer term outlook
Path to our 2029 RoTE aspiration: confident on longer term outlook Illustrative Top end of mid -teens MREL debt RoTE Transformation benefits Portfolio diversification Low Back book roll off teens RoTE Cost of retail funds 2026 2027 2028 2029 Market - driven factors Mechanical Management controlled •
Slide 10: Victoria Hyde, Chief Financial Officer
Victoria Hyde Chief Financial Officer OSB GROUP PLC |
Slide 11: H1'26 P&L performance
H1’26 P&L performance H1 26 H1 25 H2 25 Change Change £m £m £m Net interest income 339.8 337.0 1% 342.4 (1)% Net fair value loss on financial instruments (2.5) (14.3) (83)% (7.8) (68)% Gain on sale of financial instruments - - - 3.4 nm Other operating income 3.0 3.1 (3)% 4.2 (29)% Total income 340.3
Slide 12: Net interest margin
Net interest margin bps (3)bps 226 215 - 223 220 bps H2 2025 Cost of Lending Other H1 2026 Updated retail funding margin 2026 guidance NIM excluding liquid assets - bps 265 262 (aligned to peers) • Cost of retail funds: more costly spreads to SONIA from new retail deposit funding • Lending margin: b
Slide 13: Maintaining funding flexibility
Maintaining funding flexibility Established retail savings brands… …delivered 3% deposit growth 45% 46% FY’25 +3% H1’26 Fixed £24.3bn 54% £25.0bn 55% Variable Deposits remained the largest source of funds Central bank facilities provide flexibility Balances £m 5% 2% 1% 2% 4% 3% 4% 4% FY'25 1,509.9 H
Slide 14: Our cost discipline creates capacity for investment
Our cost discipline creates capacity for investment Administrative expenses, £m 0.4% 5.0 0.6 core cost 136.5 c.280 reduction 131.4 (0.5) H1 2025 Core Transformation Bank H1 2026 2026 expenses Levy guidance 1 Cost income ratio 40.3% 40.1% Management 0.88% 0.88% expense ratio • 0.4% reduction on core
Slide 15: Transformation programme on track
Transformation programme on track Total transformation spend £m Annual Semi - annual Spend to date 43.8 124.9 40.7 17.8 47.7 14.3 P&L P&L 0.7 23.2 11.8 20.4 6.5 20.6 20.0 5.1 9.8 8.0 10.5 25.7 2.1 65.4 Balance Sheet 19.5 Balance 4.4 transformation 15.3 sheet 1 4.6 intangible asset as 10.5 9.0 4.9 at
Slide 16: Disciplined loan growth, net loan book up 1.3%
Disciplined loan growth, net loan book up 1.3% OSB Group gross yield 1 Gross loan book BTL reduced BTL <60% of Buy - to- Let 6% from 70% at portfolio FY’24 2% Residential 2% 2% 2% 7% 2% 7% 2% Asset finance Commercial FY’25 20% H1’26 19% mortgages 2029 £26.0bn £26.3bn 68% 68% Bridging Development Fin
Slide 17: Credit quality remains strong – H1'26 loan loss ratio 12bps
Credit quality remains strong – H1’26 loan loss ratio 12bps Expected credit losses £m ECL coverage ratio £7m June 2026 0.50% 4.1 1.8 4.4 2.9 130.6 December 2025 0.47% 123.6 (3.1) (3.1) ECL provision compared to 5 - year average write - offs 13 8. >10 4 FY'25 Macro scenarios Model 3+ months Stage New
Slide 18: Capital generation supports shareholders' distributions
Capital generation supports shareholders’ distributions CET1 ratio % 1.1 (0.2) (0.5) (0.2) 15.8% 16.0% 90bps of organic (0.8) capital generation 15.2% XX.X 11.9 % 13 - 13.5% FY'25 Profit for 1 Loan book Dividend Other H1'26 pre Full year H1'26 CET1 target the period growth buyback buyback post Basel
Slide 19: Loan book diversification led to an increase in RWAs
Loan book diversification led to an increase in RWAs Net loans and RWAs, £bn Movement in RWAs in the year, £bn 25.9 26.3 0.2 - 1.3% 12.7 12.6 12.5 12.7 12.5 1.1% Net Loans RWAs FY25 Customer Mix & H1'26 loan book other FY25 HY26 growth RWA 38.3% 39.4% density • RWAs increased by 1.1% (£0.2bn) in H1
Slide 20: Andy Golding, Chief Executive Officer
Andy Golding Chief Executive Officer OSB GROUP PLC |
Slide 21: Revised short term guidance, confidence in longer term outlook
Revised short term guidance, confidence in longer term outlook 2026 Guidance 2027 – 2029 Aspirations Former Updated Broadly similar to 2025 Net loan book growth Unchanged Mid single digit if returns meet our requirements outcome NIM circa 225bps 215 - 220bps Loan book Buy - to- Let to comprise ≤60%
Slide 22: Appendices
Appendices OSB GROUP PLC |
Slide 23: Tangible net asset value
Tangible net asset value Tangible net asset value per share, pence Number of TNAV per TNAV shares share, £m m Pence 31 December 2025 2,062.7 356 579 Profit attributable to ordinary shareholders 135.0 38 Dividends paid (84.7) (24) Share buyback (101.0) (16) (2) Other movements (17.9) 2 (7) Net change
Slide 24: Components of the Group's capital
Components of the Group’s capital Capital resources and requirements as a percentage of RWAs 18.5% £m 2.0% 250 The Group has two MREL qualifying debt 1.3% 167 securities in issue: • £300m issued in September 2023 at 9.5% 14.0% coupon with a first reset date of 7 2.0% September 2027 2.5% 15.2% 1,931
Slide 25: OSB Group today
OSB Group today #1 Specialist lender Multi channel funding platform Unique operating model • UK largest independent specialist • Two established retail savings brands • c. 1,000 highly - skilled colleagues at our Buy - to- Let lender 1 with high retention levels: 95% for KR fully integrated subsidia
Slide 26: NIM excluding liquid assets
NIM excluding liquid assets bps H1 2025 H2 2025 H1 2026 39 269 39 265 39 262 230 226 223 NIM Liquid NIM ex- NIM Liquid NIM ex- NIM Liquid NIM ex- assets liquid assets liquid assets liquid assets assets assets Net interest income 337.0 - 337.0 342.4 - 342.4 339.8 - 339.8 Net interest income 679.6 - 6
Slide 27: OSB segment results: BTL/SME
In the first half of 2026, all new Buy - to- Let lending was originated through the Group’s new Rely brand, reported within this su b- segment and Kent OSB segment result Reliance for Intermediaries mortgages were withdrawn towards the end of 2025. BTL/SME Average book LTV 1 remained at 70% with (H1
Slide 28: OSB segment results: Residential
OSB segment results In the first half of 2026, all new Residential lending was originated through the Group’s Precise brand, reported within the Intermediaries Residential mortgages were withdrawn towards the end of 2025 and the book, which is presented within this sub CCF S segment. Kent Reliance f
Slide 29: OSB segment results: BTL/SME sub-segments
OSB segment results BTL/SME sub -segments 1. Buy to let 2. Semi - commercial/commercial mortgages 1 14,000 2,000 The weighted average • Weighted average interest coverage ratio book LTV increased to book, £m Gross loan Gross loan book, £m (ICR) was 202% during the 72% (FY’25: 71%) 7,000 12,062 12,67
Slide 30: CCFS segment results: BTL sub-segment
In the first half of 2026, all new Buy - to- Let lending was originated through the Group’s new Rely brand, reported within OSB CCFS segment results Buy - to- Let/SME sub - segment. Precise Buy - to- Let mortgages were withdrawn towards the end of 2025 and the book, which is presented within this su
Slide 31: CCFS segment results: Residential sub-segment
In the first half of 2026, all new Residential lending was originated through the Group’s Precise brand and Kent CCFS segment results Reliance for Intermediaries Residential mortgages were withdrawn towards the end of 2025. Residential sub -segment Average origination LTV increased to 66% (H1’25: 62
Slide 32: CCFS segment results: Bridging sub-segment
CCFS segment results Short - term bridging o riginatio ns increased to £338.1m (H1 2025: £331.2m ). In March, the Group widened its product range adding second charge bridging lending. Bridging sub -segment 1. Gross loan book 2. Net interest income 800 15 income (£ m) book (£ m) Net interest Gross l
Slide 33: Updated forward-looking macroeconomic scenarios
Updated forward -looking macroeconomic scenarios Forecast macroeconomic variables over a five - year period 1 Scenario % Probability Year end Year end Year end Year end Year end Scenario weighting % Economic measure 2026 2027 2028 2029 2030 GDP 0.9 0.8 1.8 1.7 1.5 Unemployment 5.6 5.4 4.8 4.5 4.3 Ba
Slide 34: Important disclaimer
Important disclaimer THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION This document should be read in conjunction with any other documents or announcements distributed by OSB GROUP PLC (OSBG) through the Regulatory News Service (RNS) . This document is not audited and contains certain forward -looking