OSB sees 'gradual return of confidence' across core markets

Lending and retail savings group OSB said on Wednesday that there had been signs of "a gradual return of confidence" across its core markets since 1 July.

OSB said it had maintained its lending discipline during Q3, with organic originations of £900.0m, down from £1.3bn at the same time a year earlier, as demand in its core sub-segments remained in line with previous expectations. Underlying and statutory loans were up by 2% year-to-date at £26.3bn and the company said it now expects full-year net loan book growth of roughly 3%.

OSB also said its full-year underlying net interest margin guidance was unchanged at 230bps–240bps as higher-yielding mortgages in the back book rolled off to current prevailing spreads and as the market observes "slightly elevated" fixed-term retail deposit pricing.

The FTSE 250-listed group added that capital and liquidity remained and highlighted that it had repurchased £32.1m worth of shares under its £50.0m repurchase programme announced in August.

Chief executive Andy Golding said: "Looking forward, whilst challenges remain, there are signs of a gradual return of confidence in our core markets and we are seeing increased applications in our more cyclical businesses.

"We have a diversified loan book with proven capabilities in multi-property professional Buy-to-Let lending and specialist residential mortgages and continue to invest in our business to ensure it is fit for the future."

As of 0840 GMT, OSB shares had rallied 7.30% to 371.48p.

Reporting by Iain Gilbert at Sharecast.com