OSB Group delivers 'strong' Q1 financial and operational performance

OSB stated organic originations were flat year-on-year in the first three months of the year at £1.1bn, while underlying and statutory net loans and advances increased 1% in the first quarter to £21.2bn and £21.4bn, respectively, in line with management expectations.

The FTSE 250-listed firm added that its 2022 underlying net interest margin was now expected to "marginally exceed" 2021, primarily due to the benefit of recent base rate rises, but said there was no change to previous guidance for underlying net loan book growth and its underlying cost to income ratio.

Chief executive Andy Goulding said: "Application volumes continued to grow during the first quarter in our buy-to-Let and residential sub-segments supported by the commercial, semi-commercial and bridging products relaunched in January. Current demand for our products remains robust, building a strong pipeline for the remainder of the year.

"Our capital position, secured loan book, and proven risk management capabilities position us well to respond to the opportunities and challenges ahead. We remain mindful of the ongoing impact of the rising cost of living and geopolitical uncertainty, however, we will deploy our resources to continue to deliver attractive, sustainable returns for our shareholders across the cycle."

As of 0910 BST, OSB shares were up 0.18% at 559.50p.