OSB Group hails "resilient financial performance" in first quarter

(Alliance News) - OSB Group PLC on Thursday said the first quarter of the year went "broadly in line" with guidance.

The specialised mortgage lender said its net loan book rose 0.9% on-quarter to GBP26.15 billion at the end of March, from GBP25.92 billion in December.

Retail deposits rose 1.8% on-quarter to GBP24.70 billion from GBP24.25 billion.

"The group delivered a resilient financial performance in the first quarter of 2026 and we continue to operate broadly in line with our 2026 guidance," Chief Executive Officer Andy Golding said.

"We also made good progress on transformation as the programme entered its penultimate year. Final stages of testing are underway ahead of the launch of Residential mortgages on the new lending platform in the third quarter."

The Chatham, Kent-based firm said its CET1 ratio "remained robust", but declined to 15.1% at March 31 from 15.8% at the end of December.

The CEO added: "Looking ahead, we are mindful of the ongoing uncertain geopolitical situation and its impact on the UK economy, the wider mortgage market and borrowers’ affordability. In response, we are carefully managing the composition and growth of our loan book."

For 2026, OSB expects "broadly similar" loan book growth to 2025, and a net interest margin of 225 basis points, compared to 228bp the year prior.

OSB shares rose 1.5% to 513.43 pence each in London on Thursday morning.

By Eric Cunha, Alliance News news editor

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