OSB Group PLC on Thursday said its trading in 2024 reflected the ‘strong fundamentals’ that underpin the business, as it revealed a new £100 million share buyback programme.
The Chatham, England-based mortgage lender, formerly known as OneSavings Bank, said pretax profit grew 12% to £418.1 million in 2024 from £374.3 million in 2023.
The advance in profit was supported by a 1.2% increase in net interest income to £666.4 million from £658.6 million. OSB also recorded a swing to impairment credit on financial assets of £11.7 million from a charge of £48.8 million.
However, administration expenses rose 10% to £258.1 million in 2024 from £234.6 million in 2023.
OSB reported a reduction in its net interest margin to 221 basis points from 231 basis points, owing to ‘lower prevailing spreads to [sterling overnight index average] from mortgages and deposits as products written in prior years reached maturity.’
Its net loan book shrank by 2.7% to £25.1 billion from £25.8 billion, following the de-recognition from the balance sheet of £1.25 billion of buy-to-let mortgages following their securitisation in December, OSB said.
OSB will start a new 12-month £100 million share buyback programme on Friday. It expects this scheme to complete no later than March 10, 2026. Citigroup Global Markets Ltd will run the programme.
The firm declared a 22.9 pence final dividend, increase its total annual dividend by 5.0% to 33.6 pence from 32.0 pence.
Shares in OSB were up 1.8% at 428.00 pence on Thursday morning in London.
For 2025, OSB expects net loan book growth in a low-single-digit percentage, with a net interest margin around 225 basis points and administrative expenses of about £270 million.
It anticipates 5% dividend growth, noting its commitment to return excess capital.
Chief Executive Andy Golding said: ‘The results delivered by OSB Group in 2024 demonstrate the strong fundamentals which underpin our business and also the focused and disciplined strategic choices made in the year by the board and management that will shape the group’s future.’
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