OSB Group interim pre-tax profits more than double

Lending and retail savings firm OSB Group said on Thursday that pre-tax profits had more than doubled in the six months ended 30 June.

OSB posted an interim statutory pre-tax profit of £221.9m, a marked increase when compared to the £99.3m reported at the same time a year earlier, predominantly driven by a release of impairment provisions and a lower cost of retail funds.

The FTSE 250-listed firm's net loan book grew 6% to £20.3bn on an underlying basis, while the group's underlying net interest margin expanded from 250 basis points to 268bps.

Underlying basic earnings per share shot up from 26.1p at the halfway point of 2020 to 41.8p at the same time a year later.

OSB also declared an interim dividend of 4.9p per share after having withheld the payment of one in the prior year.

Chief executive Andy Golding said: "We remain cognisant of ongoing uncertainty over the true impact of the pandemic once Government support ends.

"However, our resilient business model, strong capital position, secured loan book and strong risk management capabilities, continue to position us well to respond to the opportunities and challenges ahead and to deliver attractive and sustainable returns for our shareholders across the cycle."

As of 0910 BST, OSB shares were up 2.44% at 503.0p.