OSB Group (OSB) H1 2025 earnings summary

Executive summary

• Delivered resilient H1 2025 financial performance, with profit before tax of £192.3m, in line with strategic targets but down 20% year-over-year due to lower net interest income and fair value losses.

• Net loan book grew 1.2% to £25.6bn, supported by 10% growth in originations and ongoing portfolio diversification.

• Transformation program and brand simplification progressing, including new digital platforms and the Rely brand for Buy-to-Let.

• Maintained leading UK specialist lender position, with strong broker relationships and diversified product offerings.

• Enhanced technology platforms improved customer and broker experiences.

Financial highlights

• Net interest income was £337m, down 5% year-over-year but up 8% vs H2 2024; net interest margin declined to 230bps from 237bps.

• Profit before tax reached £192.3m, down 20% year-over-year; basic EPS was 37.3p, down 16% year-over-year.

• Return on tangible equity at 13.7%, down from 17.4% in H1 2024.

• Interim dividend increased 5% to 11.2p per share; £38m of £100m buyback completed.

• Cost-to-income ratio rose to 40.3% from 34.8%; admin expenses up 4% to £131.4m.

Outlook and guidance

• 2025 guidance reiterated: low single-digit loan book growth, NIM circa 225bps, admin expenses around £270m, and low-teens RoTE.

• 2026–2029: aim for mid-single-digit loan growth, cost-to-income ratio in low 30s%, and mid-teens RoTE.

• Expect continued cost discipline and further transformation investment through 2027.

• Guidance for NIM remains at circa 225bps despite funding cost pressures.