OSB Group (OSB) Q3 2024 TU earnings summary

Executive summary

• Organic originations reached £0.9bn in Q3 2024, down from £1.3bn in Q3 2023, reflecting stable demand in core sub-segments.

• Net loans increased by 2% in the nine months to 30 September 2024, reaching £26.3bn.

• Renewed focus on Commercial Mortgages, Bridging Finance, and Asset Finance led to increased applications in Q3.

• Diversified loan book and continued investment in digitalisation and customer propositions.

Financial highlights

• Underlying and statutory net loans grew to £26.3bn from £25.7bn/£25.8bn at 31 December 2023.

• Three months plus arrears balances rose by 10bps to 1.7% as of 30 September 2024.

• Small impairment release in Q3 due to improved macroeconomic scenarios.

Outlook and guidance

• Underlying net loan book growth for 2024 expected to be slightly under 3%.

• Net interest margin guidance unchanged at 230–240bps for 2024.

• Underlying cost to income ratio expected to remain at approximately 36% for 2024.

• Monitoring impact of increased stamp duty on second properties for professional landlords.