One Savings Bank (OSB) Group reported record underlying profits before tax of £591.1m, for the year ending 31st December 2022.
This was an increase of 13% compared with £522.2m the previous year, while its statutory profit before tax increased by 14% to £531.5m, compared with £464.6m in 2021.
This was primarily due to growth in OSB Group’s loan book, an improved net interest margin and net fair value gains on financial instruments.
OSB Group increased both its underlying and statutory net loan books by 12%, to £23.5bn and £23.6bn, respectively, compared with £20.9bn and £21.1bn in 2021.
This was supported by organic originations of £5.8bn, up 29% compared with £4.5bn in 2021.
OSB Group attributed its success in 2022 to strong demand across its core BTL and residential ranges, the relaunch of its residential proposition, support for customers during a volatile period, and the launch of a range of products targeted at landlords wishing to improve the energy efficiency of their properties.
Arrears were stable compared with 2021, remaining at 1.1%, and there was an underlying loan loss ratio of 14bps, representing an impairment charge of £30.7m, which reflected a more severe macroeconomic outlook.
For 2023, OSB Group said it expected a subdued market, but that its pipeline would allow the lender to target 5% net loan book growth over the year.
Andy Golding (pictured), chief executive officer at OSB Group, said: “I am delighted with the outstanding results for 2022.
“The business has remained resilient in a difficult macroeconomic environment, continuing to support and provide valuable solutions for our customers.”
