OSB sees 'gradual return of confidence' across core markets

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