OSB GROUP PLC Preliminary Results

5 March 2026	LEI: 213800ZBKL9BHSL2K459
2025 Full year results
OSB Group PLC's Full year results for the year ended 31 December 2025 are available in full unedited text at: 2025 Full Year Results and on the Group’s corporate website https://www.osb.co.uk/investors/results-reports-presentations. A copy of the full year results has also been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism. This announcement is made in accordance with DTR 6.3.5R(1A).

OSB GROUP PLC (OSBG or the Group), the specialist lending and retail savings group, announces today its results for the year ended 31 December 2025.

Andy Golding, Group CEO, said:
“The Group delivered resilient financial performance in the first year of the transition period, which was in line with our 2025 guidance. We also made tangible progress against our strategy that we set out at the Investor update last year. The loan book diversification has been gaining momentum and in 2025, combined originations in our higher-yielding sub-segments grew by 53%. The Buy-to-Let gross loan book represented 68% of the Group’s total gross loan book, a reduction from 70% a year ago, on track with our 2029 target. Finally, many milestones were achieved in the transformation programme in the year. I am particularly pleased with the launch of our new lending platform, a new brand dedicated to Buy-to-Let borrowers: Rely as well as a successful migration of some of our existing savers onto the new savings platform. All this was achieved on time and to budget.

I am pleased that the Group’s MREL resolution strategy was reclassified to Transfer from Bail-in, which will bring benefits in the later stages of our Plan. With greater clarity over the Basel 3.1 rules and our confirmed MREL status and therefore our capital requirements, the Board set a new CET1 target for the Group of 13-13.5% post implementation of the Basel 3.1 rules.

The Board has recommended a final dividend per share of 24.1 pence (2024: 22.9 pence), which together with the interim dividend of 11.2 pence (2024: 10.7 pence), represents a total ordinary dividend per share of 35.3 pence for 2025, an increase of 5% from the prior year as guided. The Board is committed to returning excess capital to shareholders and has today announced a new £100m share repurchase programme to commence on 6 March 2026.

The previously communicated direction for 2026 has been refined as guidance as follows:

• net loan book growth is now expected to be broadly similar to 2025 outcome,  
• net interest margin is expected to be circa 225bps, reflecting the same key drivers as in 2025: a continuation of lending back book dynamics; new business written at sustainable margins; and a gradual normalisation of the cost of retail funding from the current elevated levels,
• administrative expenses are expected to be c.£280m¹ with core costs increasing at no more than the rate of inflation and as we continue to invest in the transformation programme,
• finally, we anticipate a low teens return on tangible equity and a dividend per share increasing by 5% in 2026.

Return on tangible equity remains our key focus. We continue to expect mid teens RoTE in 2027-28, increasing to the top end of mid teens in 2029 driven by the successful execution of our strategy, capital optimisation and the MREL qualifying debt securities reaching their respective call dates.

The Group is well-capitalised, with strong liquidity and a high-quality secured loan book. We are focused on making progress through the transition period to deliver on our medium-term aspirations, prioritising positive outcomes for our stakeholders and strong returns for our shareholders.”

Financial and operational highlights

• Net loan book grew by 3.2% to £25.9bn as guided (31 December 2024: £25.1bn) supported by a 19% growth in originations to £4.7bn (2024: £4.0bn) with continued focus on returns and diversification into higher-yielding sub-segments
• Net interest income and net interest margin (NIM)² were £679.4m and 228bps, in line with guidance (2024: underlying³ £690.6m and 230bps, respectively). The reduction primarily related to more costly spreads to SONIA from new retail funding which more than offset more resilient back book performance and new business written at sustainable margin
• Administrative expenses and cost to income ratio increased to £270.1m and 40.4% (2024: £258.1m and 38.7%, respectively) mainly due to further investment in the Group’s transformation programme. Core administrative expenses⁴ increased by 0.8% compared with the prior year
• Loan loss ratio⁵ was 5bps (2024: (4)bps) and arrears balances of three months or more were stable at 1.7% (31 December 2024: 1.7%)
• Profit before tax reduced to £382.5m (2024: £418.1m) primarily due to an impairment charge compared to an impairment credit in the prior year, an increase in fair value losses and higher administrative expenses
• Retail deposits increased by 2% to £24.3bn (31 December 2024: £23.8bn). The Group repaid its TFSME borrowings in full on 10 September 2025
• Return on tangible equity⁶ reduced to 13.7% (2024: 14.9%) due to lower profitability in the year
• TNAV per share⁷ improved to 579 pence as at 31 December 2025 (31 December 2024: 544 pence) largely as a result of lower number of shares outstanding
• Basic earnings per share⁸ (EPS) was 75.6 pence (2024: 77.6 pence)
• The Common Equity Tier 1 capital ratio remained strong at 15.8% (31 December 2024: 16.3%)
• Total dividend of 35.3 pence per share (2024: 33.6 pence) an increase of 5% as guided
  
  

Dividend details
The recommended final 2025 dividend of 24.1 pence per share, subject to approval at the AGM on 7 May 2026, will be paid on 13 May 2026.

The ordinary shares will be quoted ex-dividend on the London Stock Exchange on 2 April 2026 with the record date of eligibility for dividend payment of 7 April 2026.

Enquiries:
OSB GROUP PLC	Brunswick Group
Alexander Holcroft, Investor Relations	Robin Wrench/Simone Selzer
t: 01634 838 973	t: 020 7404 5959

Results presentation
A webcast presentation for analysts will be held at 9:30am on Thursday 5 March. The presentation will be webcast and available on the OSB Group website at www.osb.co.uk/investors/results-reports-presentations.

The UK dial in number is 020 3936 2999 and the password is 643879. Registration is open immediately.

Summary financials

	2025	2024	change
Net interest income, £m	679.4	666.4	2%
Underlying net interest income3, £m	–	690.6	n/m
Net fair value loss on financial instruments, £m	(22.1)	(1.5)	n/m
Total income, £m	668.0	667.2	–%
Administrative expenses, £m	(270.1)	(258.1)	5%
Impairment of financial assets, £m	(13.0)	11.7	n/m
Profit before tax, £m	382.5	418.1	(9)%
Earnings per share8, pence	75.6	77.6	(3)%
Dividend per share, pence	35.3	33.6	5%
Net interest margin2, bps	228	221	7
Underlying net interest margin3, bps	–	230	n/m
Cost to income ratio, %	40.4	38.7	1.7ppt
Loan loss ratio5, bps	5	(4)	9
Return on tangible equity6, %	13.7	14.9	(1.2)ppt
TNAV/share7, pence	579	544	6%
	31-Dec-2025	31-Dec-2024
Net loans and advances to customers, £m	25,920.6	25,126.3	3.2%
Total assets, £m	31,122.7	30,243.6	3%
Retail deposits, £m	24,251.1	23,820.3	2%

Notes

1. Additional costs related to the new CEO transition and buyout are not included.
2. Net interest income as a percentage of a 13 point average of interest earning assets.
3. 2025 statutory NIM is comparable with 2024 underlying NIM as both metrics exclude acquisition-related items, which were fully written off in 2024.
4. See the Appendix for definition and calculation of APMs.
5. Impairment losses as a percentage of a 13 point average of gross loans and advances.
6. Profit attributable to ordinary shareholders, which is profit after tax, and after deducting coupons on AT1 securities, gross of tax, as a percentage of a 13 point average of shareholders’ equity excluding average intangible assets and of AT1 securities.
7. Tangible net asset value per share is shareholders’ equity excluding intangible assets and AT1 securities as at the end of the year divided by the number of shares outstanding at the end of the year.
8. Profit attributable to ordinary shareholders, which is profit after tax, and after deducting coupons on AT1 securities, gross of tax, divided by the weighted average number of ordinary shares in issue.
   
   

Important disclaimer

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 statements with respect to the business, strategy and plans of OSBG, its current goals, beliefs, intentions, strategies and expectations relating to its future financial condition, performance and results, and ESG ambitions, targets and commitments described herein. Such forward-looking statements include, without limitation, those preceded by, followed by or that include the words ‘targets’, ‘believes’, ‘estimates’, ‘expects’, ‘aims’, ‘intends’, ‘will’, ‘may’, ‘anticipates’, ‘projects’, ‘plans’, ‘forecasts’, ‘outlook’, ‘likely’, ‘guidance’, ‘trends’, ‘future’, ‘would’, ‘could’, ‘should’ or similar expressions or negatives thereof but are not the exclusive means of identifying such statements. Statements that are not historical or current facts, including statements about OSBG’s, its directors’ and/or management’s beliefs and expectations, are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Factors that could cause actual business, strategy, plans and/or results (including but not limited to the payment of dividends) to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by OSBG or on its behalf include, but are not limited to: general economic and business conditions in the UK and internationally, including any changes in global trade policies; market related trends and developments; fluctuations in exchange rates, stock markets, inflation, deflation, interest rates, energy prices and currencies; policies of the Bank of England, the European Central Bank and other G7 central banks; the ability to access sufficient sources of capital, liquidity and funding when required; changes to OSBG’s credit ratings; the ability to derive cost savings; changing demographic developments, and changing customer behaviour, including consumer spending, saving and borrowing habits; changes in customer preferences; changes to borrower or counterparty credit quality; instability in the global financial markets, including Eurozone instability, the potential for countries to exit the European Union (the EU) or the Eurozone, and the impact of any sovereign credit rating downgrade or other sovereign financial issues; technological changes and risks to cyber security; natural and other disasters, adverse weather and similar contingencies outside OSBG’s control; inadequate or failed internal or external processes, people and systems; fraud and other financial crime; acts of war and terrorist acts or hostility and responses to those acts; geopolitical events and diplomatic tensions; the impact of outbreaks, epidemics and pandemics or other such events; changes in laws, regulations, taxation, ESG reporting standards, accounting standards or practices, including as a result of the UK’s exit from the EU; regulatory capital or liquidity requirements and similar contingencies outside OSBG’s control; the policies and actions of governmental or regulatory authorities in the UK, the EU or elsewhere including the implementation and interpretation of key legislation and regulation; the ability to attract and retain senior management and other employees; the extent of any future impairment charges or write-downs caused by, but not limited to, depressed asset valuations, market disruptions and illiquid markets; exposure to regulatory scrutiny, legal proceedings, regulatory investigations or complaints; changes in competition and pricing environments; the inability to hedge certain risks economically; the adequacy of loss reserves; the actions of competitors, including non-bank financial services and lending companies; the success of OSBG in managing the risks of the foregoing; and other risks inherent to the industries and markets in which OSBG operates.

Accordingly, no reliance may be placed on any forward-looking statement. Neither OSBG, nor any of its directors, officers or employees provides any representation, warranty or assurance that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Any forward-looking statements made in this document speak only as of the date they are made and it should not be assumed that they have been revised or updated in the light of new information of future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange PLC or applicable law, including, without limitation, the UK Listing Rules, the Disclosure Guidance and Transparency Rules and UK Market Abuse Regulations, OSBG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document to reflect any change in OSBG’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. For additional information on possible risks to OSBG’s business, (which may cause actual results to differ materially from those expressed or implied in any forward-looking statement), please see the Risk review section in the OSBG 2025 Full year results.

Nothing in this document or any subsequent discussion of this document constitutes or forms part of a public offer under any applicable law or an offer or the solicitation of an offer to purchase or sell any securities or financial instruments. Nor does it constitute advice or a recommendation with respect to such securities or financial instruments, or any invitation or inducement to engage in investment activity under, or financial promotion within the meaning of, section 21 of the Financial Services and Markets Act 2000. Past performance cannot be relied on as a guide to future performance. Statements about historical performance must not be construed to indicate that future performance, share price or results in any future period will necessarily match or exceed those of any prior period.

Nothing in this document is intended to be, or should be construed as, a profit forecast or estimate for any period.

In regard to any information provided by third parties, neither OSBG nor any of its directors, officers or employees explicitly or implicitly guarantees that such information is exact, up to date, accurate, comprehensive or complete. In no event shall OSBG be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for inaccuracies or errors in, or omission from, any third-party information contained herein. Moreover, in reproducing such information by any means, OSBG may introduce any changes it deems suitable, may omit partially or completely any aspect of the information from this document, and accepts no liability whatsoever for any resulting discrepancy.

Liability arising from anything in this document shall be governed by English law, and neither OSBG nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Nothing in this document shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

Certain figures contained in this document, including financial information, may have been subject to rounding adjustments and foreign exchange conversions. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this document may not conform exactly to the total figure given.

Non-IFRS performance measures

OSBG believes that any non-IFRS performance measures included in this document provide a more consistent basis for comparing the business' performance between financial periods, and provide more detail concerning the elements of performance which OSBG is most directly able to influence or which are relevant for an assessment of OSBG. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by the Board. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the Appendix section in the OSBG 2025 Full year results for further details, reconciliations and calculations of non-IFRS performance measures included in this document and the most directly comparable IFRS measures.