ONESAVINGS BANK PLC Disposal Of Economic Interest In Precise Mortgage Funding 2020-1B Plc And Canterbury Finance No.1 Plc
January 23 2020 - 5:05AM
UK Regulatory
TIDMOSB
LEI: 213800WTQKOQI8ELD692
OneSavings Bank plc ("OSB" or the "Group")
Disposal of economic interest in Precise Mortgage Funding 2020-1B plc
and Canterbury Finance No.1 plc (the "Transactions")
OneSavings Bank plc ("OSB") today announces that its subsidiary Charter
Mortgages Limited has agreed to sell its junior economic interest in the
Precise Mortgage Funding 2020-1B plc securitisation ("PMF 2020-1B"), and
that OSB has agreed to sell its junior economic interest in the
Canterbury Finance No.1 securitisation ("Canterbury 1"). The
Transactions, which are expected to complete on 24 January 2020, will
involve the de-recognition of the underlying mortgages of the two
securitisations from the Group's balance sheet. BofA Securities managed
the sale process.
The Transactions will result in a reduction in the gross assets of the
Group of c. GBP759 million and a reduction in risk weighted assets
currently attributable to the securitised mortgages of c. GBP287
million(1) . The Transactions are expected to generate a pre-tax gain
which will be recognised in the 2020 financial year.
Commenting on the Transaction, Andy Golding, CEO of OneSavings Bank,
said:
"These Transactions provide strong evidence of the Group's continued
ability to originate quality loan portfolios across both its Charter
Court and OSB brands. I am delighted that so soon after the combination
between Charter Court and OSB we are able to demonstrate our expertise
in executing structured balance sheet management transactions across the
combined Group's enlarged balance sheet."
Enquiries:
OneSavings Bank plc
Alastair Pate t: 01634 838 97
Brunswick Group
Robin Wrench/Simone Selzer t: 020 7404 5959
About OneSavings Bank 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. OSB is a specialist lending and retail
savings Group authorised by the Prudential Regulation Authority, part of
the Bank of England, and regulated by the Financial Conduct Authority
and Prudential Regulation Authority.
OneSavings Bank
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, secured funding lines and asset
finance.
OSB originates mortgages organically via specialist brokers and
independent financial advisers through its specialist brands including
Kent Reliance for Intermediaries, InterBay Commercial and Prestige
Finance. It is differentiated through its use of highly skilled, bespoke
underwriting and efficient operating model.
OSB is predominantly funded by retail savings originated through the
long-established Kent Reliance name, which includes online and postal
channels as well as a network of branches in the South East of England.
Diversification of funding is currently provided by securitisation
programmes, the Term Funding Scheme and the Bank of England Indexed
Long-Term Repo operation.
Charter Court Financial Services Group
CCFS focuses on providing Buy-to-Let and specialist residential
mortgages; mortgage servicing, administration and credit consultancy;
and retail savings products. It operates through its three brands --
Precise Mortgages, Exact Mortgage Experts 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, the Term Funding Scheme and the
Bank of England Indexed Long-Term Repo operation.
Important disclaimer
This document should be read in conjunction with the documents
distributed by OneSavings Bank plc (OSB) through the Regulatory News
Service ('RNS'). This document is not audited and contains certain
forward-looking statements, beliefs or opinions, including statements
with respect to the business, strategy and plans of OSB and its current
goals and expectations relating to its future financial condition,
performance and results. 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. Statements that
are not historical facts, including statements about OSB'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. 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 OSB or on its behalf include,
but are not limited to: general economic and business conditions in the
UK and internationally; market related trends and developments;
fluctuations in exchange rates, stock markets, inflation, deflation,
interest rates and currencies; policies of the Bank of England, the
European Central Bank and other G8 central banks; the ability to access
sufficient sources of capital, liquidity and funding when required;
changes to OSB'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 OSB's control; inadequate or failed
internal or external processes, people and systems; terrorist acts and
other acts of war or hostility and responses to those acts; geopolitical,
pandemic or other such events; changes in laws, regulations, taxation,
accounting standards or practices, including as a result of an exit by
the UK from the EU; regulatory capital or liquidity requirements and
similar contingencies outside OSB'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; and the success of
OSB in managing the risks of the foregoing.
Accordingly, no reliance may be placed on any forward-looking statement
and no representation, warranty or assurance is made 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, OSB 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 OSB'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 OSB's business, please see
the "Risk Review" section of the OSB 2018 Annual Report and Accounts.
Copies of this are available at www.osb.co.uk and on request from OSB.
Nothing in this document and any subsequent discussion constitutes or
forms part of a public offer under any applicable law or 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. Nothing in this document is intended to be, or
should be construed as, a profit forecast or estimate for any period.
Liability arising from anything in this document shall be governed by
English law, and neither the Company 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.
(1) The reduction in gross assets and risk weighted assets accounts for
the purchase of a portfolio of GBP100.7m of senior bonds in the
PMF2020-1B by Charter Court Financial Services Limited at the closing of
the Transaction.
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January 23, 2020 05:05 ET (10:05 GMT)
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