OSB announces new GBP100 million buyback as posts "resilient" 2025

(Alliance News) - OSB Group on Thursday announced "resilient" full-year results that saw pretax profit fall despite a slight rise in net interest income, as it unveiled a new round of buybacks.

The Chatham, England-based lender reported GBP679.4 million in net interest income for 2025, up 2.0% from GBP664.4 million in 2024. Pretax profit, however, narrowed 8.5% to GBP382.5 million from GBP418.1 in the previous year.

A negative swing in impairment charges explains the divergence, as net interest margin increased by seven basis points to 228 and net loan book grew 3.2% year-on-year to GBP25.9 billion, while administrative expenses are "increasing at no more than the rate of inflation".

OSB recommended a final dividend of 24.1 pence a share, up 5.2% from the previous year's 22.9 pence. The increase the follows the interim dividend and represent a 5.1% growth in total dividend to 35.3 pence a share from 33.6 pence in 2024.

In her outlook, the lender's Chief Financial Officer Victoria Hyde expects the same drivers to play a role in 2026, with "a gradual normalisation of the cost of retail funding from the current elevated levels" and similar margins, as return on tangible equity is believed to remain low.

OSB also announced a new GBP100 million buyback scheme to be completed within a year, partnering with Jefferies to reduce the share capital and "return excess capital to its shareholders".

Chief Executive Officer Andy Golding 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...We are focused on making progress through the transition period to deliver on our medium-term aspirations."

OSB shares were up 1.7% to 577.00 pence each on Thursday morning in London.

By Martin Miraglia, Alliance News reporter

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