OneSavings sees loans and deposits hold steady in Q1

Specialist lender OneSavings Bank said on Wednesday that net loans and retail deposits had remained steady throughout the first quarter despite the Covid-19 pandemic.

OneSavings posted statutory retail deposits of £16.3bn for the three months ended 31 March, while net loans and advances came in at £18.4bn.

The FTSE 250-listed group reported an increased level of enquiries relating to both mortgage and savings products at the start of the coronavirus-related lockdown but highlighted that mortgage call volumes had now dropped back down to standard levels.

However, OneSavings said it was too early to determine what, if any, long-term effects the outbreak would have on the business and stated it had applied to access capital provided by the Bank of England's Term Funding Scheme and expects to be granted an initial borrowing allowance of roughly £1.7bn.

Chief Executive Andy Golding said: "We entered the crisis with exceptionally strong capital and liquidity positions which allowed us to rapidly assist those concerned about potential financial difficulty by offering payment holidays on a self-certified basis.

"It is too soon to say what the longer-term impact will be on our business, but we entered this period with a strong and secured balance sheet, sensible LTVs and strong risk management capabilities equipping us well to navigate the current situation."

As of 0845 BST, OneSavings shares were up 1.02% at 245.28p.