OSB GROUP PLC - Trading Update for the nine months to 30 September 2025
LEI: 213800ZBKL9BHSL2K459
OSB GROUP PLC
Trading update for the nine months to 30 September 2025
OSB GROUP PLC (the Group), the specialist lending and retail savings group, today issues its trading update for the period from 1 January to 30 September 2025.
The Group’s performance in the nine months to 30 September was in line with expectations and on track to meet 2025 guidance.
Performance for the nine months to 30 September 2025
| £m | 30-Sept-2025 | 31-Dec-2024 | Change |
| Net loan book | 25,5871 | 25,126 | 1.8% |
| Total assets | 30,955 | 30,244 | 2.4% |
| Retail deposits | 25,259 | 23,820 | 6.0% |
| CET1 ratio %2 | 15.8 | 16.3 | (50)bps |
| 3 months+ arrears % | 1.7 | 1.7 | - bps |
1. Net loan book as at 30 September 2025 is after deduction of £130m of second charge loans which were sold in September 2025. Excluding the sale, the net loan book would have increased by 2.3% from 31 December 2024
2. Unaudited and includes Q3 2025 unverified profits net of foreseeable dividend and other charges
Financial highlights: Resilient delivery against plan and on track for 2025 guidance
The Group’s net loan book grew in line with expectations in the first nine months of 2025 supported by a 19% increase in originations to £3.4bn compared to £2.8bn in the first nine months of 2024. In September, the Group sold its portfolio of second charge mortgages (£130m). Excluding the sale, the net loan book would have increased by 2.3% from 31 December 2024.
The Group is delivering on its plan to evolve its loan book mix. Originations in higher-yielding sub-segments in the first nine months of 2025 outpaced origination volumes in Buy-to-Let. Origination and retention margins remained in line with expectations.
Total assets reflected net loan book growth in the period and a 4.9% increase in liquid assets.
Retail deposits increased as the Group repaid its TFSME borrowings in full on 10 September 2025 and undertook some pre-funding for the fourth quarter of the year. As expected, cost of funds in the market remained elevated in the third quarter in the run up to a large market wide TFSME repayment event.
Three months plus arrears balances reverted to 1.7% from 1.8% as at 30 June 2025, in line with the previous trend. Credit quality of the loan book remained strong in the period.
The Common Equity Tier 1 capital ratio remained robust at 15.8%, reflecting resilient financial performance in the nine months and the £100m share repurchase programme announced in March. After the second charge portfolio sale, RWAs increased by 4.0% in the first nine months of 2025, as the Group carefully optimised the loan book toward higher-yielding assets.
The Group had repurchased £67.7m worth of shares under the £100m share repurchase programme1 which is due to complete no later than 10 March 2026.
1. As at market close on 4 November 2025
Andy Golding, CEO of OSB GROUP PLC, said:
“I am pleased with the Group’s resilient financial performance and strategic progress in the nine months to 30 September. We have delivered in line with our plan and we are on track for the full year 2025 net interest margin, administrative expenses, loan book growth and return on tangible equity guidance.
Our lending franchise performed well as we continued to exercise discipline and optimise returns. In our Buy-to-Let segment we remained focused on professional landlords refinancing or adding to their portfolios. The new Residential products which were launched in the second quarter have been gaining traction and we have seen good origination volumes in our higher-yielding sub-segments. In September, we sold our second charge mortgage portfolio, as we continue to focus on our strategic aims of optimising our balance sheet and improving our blended risk adjusted returns.
In September, the Group completed a £578m securitisation of owner-occupied prime mortgages under the CMF programme and I am pleased that we have achieved our best-ever pricing for this transaction. We will continue to complement retail savings funding with attractive price and duration options as we actively manage our overall cost of funds in a competitive market.
The transformation programme progressed in line with our plan in the third quarter. In October we began successfully migrating the first tranche of existing Easy Access accounts onto the new savings platform and this will continue in the coming weeks. We are also processing more Buy-to-Let applications on the new lending platform under the Rely brand before a market launch later this month.
Looking ahead, we are cognisant that the Buy-to-Let mortgage market remains subdued however the fundamentals of the UK Private Rented Sector are strong. We are focused on making progress through the transition period to deliver on our medium-term aspirations, with positive outcomes for our stakeholders and strong returns for our shareholders.”
Enquiries:
OSB GROUP PLC, Investor Relations Brunswick Group
Alexander Holcroft/Richard Treacher/Monika Ziober Robin Wrench/Simone Selzer
t: 01634 838 973 t: 020 7404 5959
Financial calendar for 2026*
| 5 March 2026 | 2025 year end results |
| 30 April 2026 | Q1 trading update |
| 7 May 2026 | AGM |
| 6 August 2026 | 2026 half year results |
| 5 November 2026 | Q3 trading update |
* All dates are subject to change
About OSB GROUP PLC
OneSavings Bank plc (OSB) began trading as a bank on 1 February 2011 and was admitted to the main market of the London Stock Exchange in June 2014 (OSB.L). OSB joined the FTSE 250 index in June 2015. On 4 October 2019, OSB acquired Charter Court Financial Services Group plc (CCFS) and its subsidiary businesses. On 30 November 2020, OSB GROUP PLC became the listed entity and holding company for the OSB Group. The Group provides specialist lending and retail savings and is authorised by the Prudential Regulation Authority, part of the Bank of England, and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The Group reports under two segments, OneSavings Bank and Charter Court Financial Services.
OneSavings Bank (OSB)
OSB primarily targets market sub-sectors that offer high growth potential and attractive risk-adjusted returns in which it can take a leading position and where it has established expertise, platforms and capabilities. These include private rented sector Buy-to-Let, commercial and semi-commercial mortgages, residential development finance, bespoke and specialist residential lending and asset finance.
OSB originates mortgages organically via specialist brokers and independent financial advisers through its specialist brands including Kent Reliance for Intermediaries and InterBay Commercial. It is differentiated through its use of highly skilled, experience-based manual underwriting and efficient operating model.
OSB is predominantly funded by retail savings originated through the long-established Kent Reliance name, which takes deposits online and through a network of branches in the South East of England. Diversification of funding is currently provided by securitisation programmes and the Bank of England’s Term Funding Scheme with additional incentives for SMEs.
Charter Court Financial Services Group (CCFS)
CCFS focuses on providing Buy-to-Let and specialist residential mortgages and retail savings products. It operates through its brands: Precise and Charter Savings Bank.
It is differentiated through risk management expertise and best-of-breed automated technology and systems, ensuring efficient processing, strong credit and collateral risk control and speed of product development and innovation. These factors have enabled strong balance sheet growth whilst maintaining high credit quality mortgage assets.
CCFS is predominantly funded by retail savings originated through its Charter Savings Bank brand. Diversification of funding is currently provided by securitisation programmes and the Bank of England’s Term Funding Scheme with additional incentives for SMEs.
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; 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; market relating trends and developments; 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, 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”.
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 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 (Key performance indicators) for further details, reconciliations and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.
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