OSB GROUP PLC Trading Update

 
TIDMOSB 
 
 
   LEI: 213800ZBKL9BHSL2K459 
 
   OSB GROUP PLC: Trading update 
 
   Published: 05.05.2021 
 
   OSB GROUP PLC 
 
   Trading update 
 
 
 
   OSB GROUP PLC (OSBG or the Group), the specialist lending and retail 
savings group, today issues its trading update for the period from 1 
January 2021 to date. 
 
   Highlights 
 
 
   -- Strong financial and operational performance continued throughout the 
      first quarter 
 
          -- Organic originations of GBP1.1bn in the first three months of 2021 
             (Q1 2020: GBP1.5bn) on tighter post-COVID criteria and at 
             attractive margins 
 
          -- Underlying1 net loans and advances increased by 3% in the first 
             quarter to GBP19.6bn (31 December 2020: GBP19.0bn). On a statutory 
             basis, net loans and advances were GBP19.8bn (31 December 2020: 
             GBP19.2bn) 
 
 
   -- 3+ months arrears remained stable in the first quarter and impairment 
      provisions benefitted from house price appreciation, which outperformed 
      the HPI assumptions in our IFRS 9 models 
 
   -- No change to 2021 guidance issued in the preliminary results announcement 
      on 8 April 2021 
 
 
   Andy Golding, CEO of OSB GROUP PLC, said: 
 
   "I am delighted with the financial and operational performance that OSB 
Group has achieved so far this year. The underlying net loan book grew 
to GBP19.6bn at the end of March 2021, supported by GBP1.1bn of organic 
originations, achieved at attractive margins and on tighter post-COVID 
criteria. We entered the second quarter with a robust pipeline of new 
business and applications in our core Buy-to-Let and Residential 
sub-segments remain strong. We continue to control volumes in our more 
cyclical product lines. 
 
   With the continued successful vaccine roll-out and progressive easing of 
lockdown restrictions, the outlook for the UK economy has improved, 
although we remain cognisant of ongoing uncertainty. Our business model 
continues to demonstrate its resilience and inherent strengths. Our 
strong capital position, secured loan book and strong risk management 
capabilities position us well to respond to opportunities and challenges 
ahead and to deploy our resources to continue to deliver attractive, 
sustainable returns for our shareholders across the cycle." 
 
   1. Underlying loan book excludes the fair value uplift to CCFS loan book 
on acquisition and related acquisition adjustments. 
 
   Enquiries: 
 
   OSB GROUP PLC 
 
   Alastair Pate t: 01634 838 973 
 
   Brunswick Group 
 
   Robin Wrench / Simone Selzer t: 020 7404 5959 
 
   About OSB GROUP 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 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 and InterBay Commercial. 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 and the Bank of England funding schemes including, the Term 
Funding Scheme and the Term Funding Scheme for SMEs. 
 
   Charter Court Financial Services Group 
 
   CCFS focuses on providing Buy-to-Let and specialist residential 
mortgages, mortgage servicing, administration and retail savings 
products. It operates through its brands: Precise Mortgages 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 funding 
schemes including, the Term Funding Scheme and the Term Funding Scheme 
for SMEs. 
 
   Important disclaimer 
 
   This document should be read in conjunction with the documents 
distributed by OSB GROUP PLC (OSBG) 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 OSBG 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 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. 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; 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 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; 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 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; and the success of 
OSBG 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, 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, 
please see the Risk review in the OSBG 2020 Annual Report and Accounts. 
Copies of this are available at www.osb.co.uk and on request from OSBG. 
 
   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. 
 
   Non-IFRS performance measures 
 
   OSB GROUP PLC believes that the non-IFRS performance measures included 
in this document provide valuable information to the readers as they 
enable the reader to identify a more consistent basis for comparing the 
business' performance between financial periods, and provide more detail 
concerning the elements of performance which the Group is most directly 
able to influence or are relevant for an assessment of the Group. 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. For 
further details, refer to Alternative performance measures in the 
Financial review in the OSBG 2020 Annual Report and Accounts. Copies of 
this are available at www.osb.co.uk and on request from OSBG.

(END) Dow Jones Newswires

May 05, 2021 02:00 ET (06:00 GMT)

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